Information about AQR and ST exercise

The Bank of Slovenia, in coordination with Slovenian Ministry of Finance, has commissioned a system-wide Asset Quality Review (AQR) and bottom-up Stress Testing (ST) exercise in line with European Council’s recommendations (Recommendation for a Council Recommendation on Slovenia's 2013 national reform programme and delivering a Council opinion on Slovenia's stability programme for 2012 – 2016, June 2013). In addition to the three banks of systemic importance (NLB, Nova KBM and Abanka), taking into account specific criteria, Banka Celje, Gorenjska banka, Probanka, Factor banka, UniCredit Banka Slovenija, Hypo Alpe Adria Bank and Raiffeisen banka will also participate in the AQR and ST exercise. Bank of Slovenia has appointed Oliver Wyman for the ST exercise, Deloitte and EY for the AQR exercise and several independent real estate appraisers.

The AQR exercise includes data completeness and integrity verification, individual loan file reviews, collateral value appraisals and identification of impaired assets/impairment deficit. The ST exercise aims to assess the potential capital needs under a baseline (more favourable) and a highly stressed macroeconomic scenario for a three-year projection period (2013-2015).

The exercise will be supervised by a Steering Committee consisting of Bank of Slovenia, Slovenian Ministry of Finance and observers from the European Commission, the European Central Bank and the European Banking Authority. Results are expected by the end of the year.