STA, 2 August 2019 - Macro stress tests conducted by the Slovenian central bank have shown that the country's banking system is stable. "In the baseline as well as stress scenario, the Slovenian banking system has been shown to have appropriate capital adequacy," Banka Slovenije said on Friday.
"Slovenian banks are relatively well capitalised and have improved the quality of their credit portfolios, which is the consequence of successful reduction of non-performing exposure in recent years," the central bank said.
The stress tests were conducted using two macroeconomic scenarios designed to check the resilience of banks to shocks.
The baseline scenario considered the most likely macroeconomic trends through 2021 based on the bank's own forecasts, with the stress scenario assuming a downturn - a contraction of the economy by a cumulative 2.3% over three years.
Macro stress tests are top-down exercises for the entire banking system and are seen as complimentary to supervisory stress tests, which are bottom-up exercises focused on each individual bank.
