Regulation on the Application of EBA Guidelines on Limits to Exposures to Shadow Banking Entities

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE Page 1 of 2  Official Gazette of the Republic of Slovenia, No. 49/16 of 8 July 2016 (in force since 9 July 2016) Pursuant to the third paragraph of Article 13 of the Banking Act (Official Gazette of the Republic of Pursuant to the third paragraph of Article 13 of the Banking Act (Official Gazette of the Republic of Slovenia, No. 25/15; hereinafter: the ZBan-2), and the first paragraph of Article 31 of the Bank of Slovenia Act (Official Gazette of the Republic of Slovenia, Nos. 72/06 [official consolidated version] and 59/11), the Governing Board of the Bank of Slovenia hereby issues the following REGULATION on the application of the guidelines entitled Limits on exposures to shadow banking entities which carry out banking activities outside a regulated framework under Article 395(2) of Regulation (EU) No 575/2013 Article 1 (purpose and field of application) (1) Pursuant to the first paragraph of Article 16 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331 of 15 December 2010, p 12; hereinafter: Regulation (EU) No 1093/2010), on 15 December 2015 the European Banking Authority issued guidelines entitled Limits on exposures to shadow banking entities which carry out banking activities outside a regulated framework under Article 395(2) of Regulation (EU) No 575/2013 (hereinafter: the guidelines), which are published on its website. (2) The guidelines referred to in the first paragraph of this article set out the methodology that should be used as part of the internal processes and policies for addressing and managing concentration risk arising from exposures to shadow banking entities. In particular the guidelines specify criteria for setting an appropriate aggregate limits and tighter individual limits on exposures to such entities. (3) The guidelines are addressed to:

• financial institutions as defined in Article 4(1) of Regulation (EU) No 1093/2010, and
• competent authorities as defined in point (i) of Article 4(2) of Regulation (EU) No 1093/2010. Article 2 (content of regulation and scope of application of guidelines) (1) By virtue of this regulation the Bank of Slovenia sets out the application of the guidelines to:

1. banks and savings banks that in accordance with the ZBan-2 have obtained an authorisation to provide banking services in the Republic of Slovenia and to which Part Four (Large Exposures) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (hereinafter: Regulation (EU) No 575/2013) applies, in accordance with the level of application set out in Title II of Part One of that Regulation (hereinafter: banks), and
2. the Bank of Slovenia, when in accordance with the ZBan-2 in its role as the competent authority it is exercising supervisory powers and tasks over banks referred to in point 1 of this paragraph. (2) Banks referred to in point 1 of the first paragraph of this article shall take full account of the provisions of the guidelines in the parts addressed to banks.

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE Page 2 of 2 (3) In exercising its supervisory powers and tasks in accordance with the ZBan-2 and Regulation (EU) No 575/2013, the Bank of Slovenia shall take full account of the provisions of the guidelines in the parts relating to the exercise of the powers and tasks of the competent authority. Article 3 (entry into force) This regulation shall enter into force on the day after its publication in the Official Gazette of the Republic of Slovenia, and shall begin to be applied on 1 January 2017. Ljubljana, 30 June 2016 Boštjan Jazbec President, Governing Board of the Bank of Slovenia