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Home  > Bank of Slovenia  > Press Releases  

Press Releases

   

Date   Title of a Press Release
30.12.2016   Press release - Electronic system for the exchange of information regarding the indebtedness of private individuals and business entities will begin functioning on 3 January 2017
22.11.2016   Press release - Summary of macroeconomic developments and Monthly information on bank performance
28.10.2016   Response to decision by Constitutional Court
19.10.2016   Press release: Banks’ non-performing exposures
13.10.2016   Press release - Ceremony to mark the 25th anniversary of the introduction of the Slovenian tolar, and presentation of awards for master’s and doctoral theses
11.10.2016   Press release - Economic and Financial Developments report and Monthly information on bank performance in August 2016
07.10.2016   Press release - Annual Meetings of the IMF and the World Bank Group
07.10.2016   Press release - 25 years since the introduction of the Slovenian tolar
15.09.2016   Press release - Central Credit Register: key data
06.09.2016   Press release - Announcing the introduction of macro-prudential instruments for the real estate market
31.08.2016   Press release - Monthly information on bank performance and the August 2016 Summary of macroeconomic developments
26.08.2016   Press release - Bank of Slovenia files appeal
08.08.2016   Press release - Handover of minutes of the governor’s internal meetings
08.08.2016   Information for investors of Moja delnica BPH d. d. - Payments of guaranteed claims
29.07.2016   Press release - EBA Stress Test results and Slovenian Banks test
26.07.2016   Press release: Guaranteed claims to be repaid to investors in Moja delnica BPH in bankruptcy at NLB
19.07.2016   Press release - The Court of Justice of the EU - Bank of Slovenia positions confirmed
13.07.2016   Press release - Economic and financial developments, July 2016; Summary of macroeconomic developments, July 2016
13.07.2016   Bank of Slovenia’s response to publication of the answer sent by the State Prosecutor General to the President of the ECB
12.07.2016   Information for investors in the company Moja delnica BPH, d.d.
07.07.2016   Press release - A pre-criminal investigation procedure in Bank of Slovenia
10.06.2016   Press release - 5. meeting of the National Payments Council
08.06.2016   Press release - New collector and commemorative coins on sale and in circulation on 20 June
07.06.2016   Press release - Macroeconomic Forecast for Slovenia and Financial Stability Review, June 2016
24.05.2016   Press release - Latest Economic and financial developments and bank performance
16.05.2016   IMF Staff Report in the context of the 2016 Article IV consultation with Slovenia
04.05.2016   Press release - ECB ends production and issuance of €500 banknote
21.04.2016   Clarification: Assessment of suitability of members of bank supervisory boards
15.04.2016   Press release - Spring Meetings of the IMF and the World Bank Group
13.04.2016   Press release - Economic and Financial Developments, April 2016
31.03.2016   Press release - Published analysis of fees of banks and savings banks – 2015
30.03.2016   Press release - Close of Generation €URO Competition 2015/16
25.03.2016   Press release - Survey on a access to corporate financing - 2015
07.03.2016   Reports of breaches by 31 December 2015
24.02.2016   Press release - Summary of macroeconomic developments and bank performance in 2015
23.02.2016   Press release - Bank of Slovenia’s reaction to the Advocate General’s opinion: additional clarifications
19.02.2016   Press release - Bank of Slovenia’s reaction to the Advocate General’s opinion
12.02.2016   Denial of statement by state secretary at MoF on Tarča (RTV Slovenija)
11.02.2016   Press release: Termination of special administration at Factor banka and Probanka
26.01.2016   Press release - Banks need greater customer diversification in terms of their specifics, both in resolving non-performing claims and in lending
18.01.2016   Press release: Visit to Slovenia by the chair of the supervisory board of the Single Supervisory Mechanism (SSM)
12.01.2016   Press release: Moderate growth in investment in machinery and equipment
         

Press release - Summary of macroeconomic developments and Monthly information on bank performance

Ljubljana, 22. 11. 2016

Governing Board of the Bank of Slovenia discusses and approves the publications Summary of macroeconomic developments and Monthly information on bank performance*.

1.Summary of macroeconomic developments, November 2016

Economic growth in the euro area remains stable but relatively low. According to Eurostat’s estimate, growth in the third quarter was 0.3% in quarterly terms and 1.6% in year-on-year terms, the same as in the second quarter. In addition to the slowdown in growth in retail turnover, developments in industry have also been weaker this year, while construction is recovering, partly in connection with slightly stronger investment in residential construction. The outlook for the end of the year is better, as confidence in the economy, particularly in manufacturing and services, has strengthened in recent months.
Growth in the Slovenian economy in the third quarter remained at a similar level to the first half of the year. Growth in industrial production again sharply out-performed the average across the euro area. The growth in and structure of imports also suggest a further strengthening of domestic demand with increased private consumption, which is being supported by a dynamic labour market, and increased private-sector investment. The government sector is also increasing its final consumption. The conditions on the domestic market remain favourable to growth in turnover in services. The situation in the construction sector, which is strengthening its presence on foreign markets, is also improving gradually, while domestic demand for construction services is strengthening, most notably in the construction of residential buildings. Economic activity is also forecast to increase into 2017: according to the SORS survey, firms in all sectors remain optimistic with regard to future demand.
On the labour market, employment remained dynamic in the third quarter. The year-on-year increase in the workforce in employment reached 2.7% in September, after the elimination of the statistically unreliable category of farmers. The fall in the number of unemployed has accordingly strengthened this year. According to Eurostat’s monthly estimate, the seasonally adjusted unemployment rate fell to 7.7% in September, down 1 percentage point on a year earlier. Wage growth has also strengthened this year, partly on account of agreed government sector wage hikes and partly due to relatively strong bonus payments in the private sector.
Risks associated with wage growth are on the upside due to negotiations in the public sector, while private sector wages are expected to rise in line with increasing productivity.
The stronger domestic demand has stabilised the 12-month merchandise trade surplus in recent months. It amounted to 4.3% of GDP between July and September. The widening of the current account surplus was attributable to an increase in the surplus of trade in services and a narrower deficit in income. The overall 12-month current account surplus stood at a high 6.8% of GDP in September, which in addition to changes in the income position was also a reflection of the favourable terms of trade, the persistent relatively low level of domestic final consumption and investment, and the competitiveness of the export sector.
The general government deficit is continuing to diminish. General government revenues over the first eight months of the year were up 1.0% in year-on-year terms; the low growth was primarily attributable to a decline in revenue from the EU budget. Expenditure was down 1.4% over the same period as a result of a decline in public investment. The other major categories of expenditure are increasing, most notably wages and transfers to households, including pensions, which is contributing to growth in private consumption. In its autumn forecasts the European Commission is forecasting a general government deficit of 2.4% of GDP according to the ESA 2010 methodology, while the Ministry of Finance is forecasting a deficit of 2.2% of GDP. Both institutions are forecasting the deficit to narrow further over the next two years. In the opinion of the European Commission, the main risks to public finances are BAMC transactions and the costs of a potential renewed increase in inflows of migrants. General government expenditure could also increase more strongly than forecast in the government plans as a result of the outcome of the negotiations between the government and the trade unions on wage adjustments in the public sector, and the meeting of strike demands by physicians.
Deflationary pressures are easing, but inflation remains low. Year-on-year growth in prices as measured by the HICP rose to 0.7% in October, thus outpacing the average across the euro area, which stood at 0.5%, after a lengthy period of trailing. The negative contribution made by energy prices is continuing to diminish, but the ongoing decline could be slowed by the partial liberalisation of prices of refined petroleum products. The prices of unprocessed food, clothing and footwear recorded a sharp year-on-year increase. Growth in services prices remained at the level of the two previous months, and significantly above the average across the euro area.

2. Monthly information on bank performance, November 2016*

The banking system’s total assets declined by EUR 247 million in September (to EUR 36.297 million), and were down 2.7% on the same period last year. Contributing to the aforementioned decline were lower deposits by the non-banking sector and the continuing reduction in the banks’ liabilities to the rest of the world. In contrast to previous months, liabilities to the Eurosystem were up due to the participation of two banks in a TLTRO II operation. Loans to the non-banking sector were down among the banks’ assets.
The contraction in lending activity slowed further in September. Loans to the non-banking sector were down 4.3% relative to last September. The contraction in loans to non-financial corporations continues to slow, with those loans down 9.7% in year-on-year terms in September. Loans to households recorded the highest growth, of 2.6% in year-on-year terms in September. At 3.2%, following years of decline, year-on-year growth in consumer loans has nearly matched the pace of growth in housing loans. All bank groups, both the large and small banks under majority domestic ownership and the banks under majority foreign ownership, continue to record growth in loans to households.
Among sources of bank funding, growth in deposits by the non-banking sector is strengthening, and reached 1.9% in September. Growth in the most important source of funding, household deposits, fell slightly in September, but remains at a favourable 5.9%. The stock of the aforementioned deposits rose by EUR 703 million over the first nine months of the year. In the context of persistently low interest rates on deposits, the proportion of sight deposits continues to rise, and in September stood at 62% of all deposits by the non-banking sector. That figure is strengthening at all bank groups, and remains the highest at the large domestic banks (65%) and lowest at the small domestic banks (58%).
The quality of the banks’ credit portfolio is improving. The stock and proportion of claims more than 90 days in arrears continue to decline, that fall accelerating in the third quarter of 2016 when the aforementioned proportion fell to 6.4%. That translates to a reduction of 3.5 percentage points relative to the end of 2015. We can also expect the continued decline in the indicator of non-performing exposures according to the broader EBA definition, which alongside its broader capture of bank investments also includes forborne exposures under non-performing exposures. The majority of claims more than 90 days in arrears is still accounted for by claims against non-financial corporations, but both the stock and proportion of claims within the aforementioned sector have fallen to the 2009 level. A trend of decline in the stock and proportion of claims more than 90 days in arrears can also be seen at SMEs, which represent the more burdened segment of non-financial corporations.
The banking system recorded a pre-tax profit of EUR 334 million during the first nine months of this year. Impairment and provisioning costs had a positive impact on the banks’ operating results until the end of August as the result of net releases. In contrast to the preceding months, impairment and provisioning costs rose to EUR 39 million in September and thus reduced the banks’ profit.
There have been no major changes in recent months in terms of the banking system’s liquidity, which remains favourable and appropriate, which also currently applies to capital adequacy ratios.
 

*only in slov. lang. (Mesečna informacija o poslovanju bank)

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Slovenska 35
1505 Ljubljana
Slovenia
Phone: +386 1 471 90 00
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