Decisions adopted by the Governing Board on 11 April 2007

1. At today's meeting the Governing Board of the Bank of Slovenia discussed the readiness of banks for the introduction of the Basel II capital framework. This framework requires a greater level of harmonisation between economic and regulatory capital and stimulates banks to achieve higher quality and more comprehensive risk management. The objective of the new capital framework is improved harmonisation of regulatory requirements with the actual risks of banks. The regulations of the Bank of Slovenia that prescribe in greater detail the capital requirements of banks and savings banks based on European directives included in the Banking Act, set out a significant part of the credit rating regulation. Basel II will provide banks with a new view with regard to risk assumption, organisational changes, new methodologies, the calculation of capital and capital adequacy, reporting to the Bank of Slovenia and disclosures in annual reports, including those reports prepared on a consolidated basis. 
   The Bank of Slovenia will monitor and supervise the implementation of the aforementioned framework with direct reviews, focusing primarily on the verification of conditions and compliance with the internal plans of banks. These reviews will define in detail the organisation, management and supervision of the introduction of Basel II, as well as the preparations of banks for the realisation of claims from the areas of credit and operational risks, banks' readiness to implement the requirements of the risk management regulation and the implementation of the process of assessing internal capital adequacy. The main objective of supervising the readiness of banks for fulfilling the requirements of the new capital framework is to determine the banks' state of readiness for the introduction of the requirements of the directive and related regulations of the Bank of Slovenia. The preparations of banks for Basel II are being carried out in cooperation with the Bank Association of Slovenia.
   
2. The Governing Board of the Bank of Slovenia approved the Annual Report for 2006.