Regulation on the Exercise of Options and Discretions under European Union Law

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE Page 1 of 7 • Official Gazette of the Republic of Slovenia, No. 105/21 of 2 July 2021 – basic text (in force since 3 July 2021) • Official Gazette of the Republic of Slovenia, No. 67/22 of 13 May 2022 – additions (in force since 28 May 2022) • Official Gazette of the Republic of Slovenia, No. 108/24 of 20 December 2024 – amendments and additions (in force since 1 January 2025) • Official Gazette of the Republic of Slovenia, No. 68/25 of 5 September 2025 – amendment (in force since 20 September 2025) Pursuant to the first paragraph of Article 23 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], 59/11 and 55/17), and for the implementation of Articles 9 and 11 of the Banking Act (Official Gazette of the Republic of Slovenia, No. 92/21 and 123/21 – ZBNIP; hereinafter: the ZBan-3), in connection with 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 (OJ L 2024/1623 of 19 June 2024, p 1), last amended by Regulation (EU) 2025/1215 of the European Parliament and of the Council of 17 June 2025 amending Regulation (EU) No 575/2013 as regards requirements for securities financing transactions under the net stable funding ratio (OJ L 2025/1215 of 25 June 2025, p. 1) (hereinafter: Regulation (EU) No 575/2013) and Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for credit institutions (OJ L 11 of 17 January 2015, p 1), last amended by Commission Delegated Regulation (EU) 2022/786 of 10 February 2022 amending Commission Delegated Regulation (EU) 2015/61 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for credit institutions (OJ L 141 of 20 May 2022, p 1) (hereinafter: Delegated Regulation (EU) 2015/61), the Governing Board of the Bank of Slovenia hereby issues the following REGULATION on the exercise of options and discretions under European Union law Article 1 (subject matter and scope) (1) This regulation sets out in detail certain options and discretions under European Union law that are exercised by the Bank of Slovenia as the competent authority responsible for supervising banks and savings banks (hereinafter: banks). (2) This regulation shall apply in connection with banks for whose supervision the Bank of Slovenia is responsible in accordance with Article 6(4) of Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287 of 29 October 2013, p 63) and Part IV and Article 147(1) of Regulation (EU) No 468/2014 of the European Central Bank of 16 April 2014 establishing a framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities (OJ L 141 of 14 May 2014, p 1). (3) Whenever this regulation makes reference to the provisions of other regulations, these provisions shall apply in their valid wording at the time in question.

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE Page 2 of 7 Article 2 (definition of terms) The terms used in this regulation shall have the same meaning as in the provisions of the ZBan-3, Regulation (EU) No 575/2013, Delegated Regulation (EU) 2015/61, and other regulations issued on their basis. CHAPTER I Own funds Article 3 (Article 89(3) of Regulation (EU) No 575/2013: risk weighting and prohibition of qualifying holdings outside financial sector) Without prejudice to Article 90 of Regulation (EU) No 575/2013 and for the purpose of calculating the capital requirements in accordance with Part Three of Regulation (EU) No 575/2013, banks shall apply a risk weight of 1 250 % to the greater of the following: (a) the amount of qualifying holdings in undertakings referred to in Article 89(1) of Regulation (EU) No 575/2013 in excess of 15 % of the eligible capital of the bank, and (b) the total amount of qualifying holdings in undertakings referred to in Article 89(2) of Regulation (EU) No 575/2013 that exceeds 60 % of the eligible capital of the bank. CHAPTER II Capital requirements Article 4 (deleted) Article 5 (deleted) Article 6 (Article 178(2)(d) of Regulation (EU) No 575/2013: threshold for assessment of the materiality of a credit obligation past due for the purpose of definition of default) (1) For the purposes of Article 178(2)(d) of Regulation (EU) No 575/2013, banks shall assess the materiality of a credit obligation past due against the following threshold, which comprises two components: (a) the absolute component is the sum of all amounts past due owed by the obligor to the bank, the parent undertaking of that bank, or any of its subsidiaries (hereinafter: credit obligation past due), and is equal: (i) for a retail exposures, to EUR 100; (ii) for exposures other than retail exposures, to EUR 500; and (b) the relative component is the amount of the credit obligation past due in relation to the total amount of all on-balance sheet exposures to that obligor for the bank, its parent undertaking or any of its subsidiaries, excluding equity exposures, which is equalto 1 %. (2) For banks applying the definition of default laid down in points (a) and (b) of the first sub￾paragraph of Article 178(1) of Regulation (EU) No 575/2013 for retail exposures at the level of an individual credit facility, the threshold laid downin paragraph (1) shall apply at the level of the

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE Page 3 of 7 individual credit facility granted to the obligor by the bank, its parent undertaking or any of its subsidiaries. (3) A default shall be deemed to have occurred when the limit expressed as the absolute component of the threshold, as well as the limit expressed as the relative component of the threshold, have been exceeded for more than 90 consecutive days. Article 7 (Article 380 of Regulation (EU) No 575/2013: waiver) In the event of a system-wide failure of a settlement system, a clearing system or a central counterparty system within the meaning of Article 380 of Regulation (EU) No 575/2013, until the situation is rectified, the following provisions shall apply: (a) banks shall not be required to comply with the own funds requirements laid down in Articles 378 and 379 of Regulation (EU) No 575/2013; and (b) the failure of a counterparty to settle a trade shall not be deemed a default for the purposes of credit risk. CHAPTER III Large exposures Article 8 (Article 395(1) of Regulation (EU) No 575/2013: limits to large exposures) The limit on the value of a large exposure within the meaning of Article 395(1) of Regulation (EU) No 575/2013 shall not be lower than EUR 150 million. Article 9 (Article 400(2) of Regulation (EU) No 575/2013: exemptions) (1) The exposures listed in Article 400(2)(a) of Regulation (EU) No 575/2013 shall be exempted from the application of Article 395(1) of that Regulation for 80 % of the nominal value of the covered bonds, provided that the conditions set out in Article 400(3) of that Regulation 575/2013 are fulfilled. (2) The exposures listed in Article 400(2)(b) of Regulation (EU) No 575/2013 shall be exempted from the application of Article 395(1) of that Regulation for 80% of their exposure value, provided that the conditions set out in Article 400(3) of that Regulation are fulfilled. (3) The exposures listed in Article 400(2)(c) of Regulation (EU) No 575/2013 incurred by the bank to the undertakings referred to therein, in so far as those undertakings are established in the Union, shall be fully or partially exempted from the application of Article 395(1) of that Regulation, provided that the conditions set out in Article 400(3) of that Regulation, as further specified in Annex I of Regulation (EU) 2016/445 of the European Central Bank of 14 March 2016 on the exercise of options and discretions available in Union law (OJ L 78 of 24 March 2016, p 60; hereinafter: Regulation (EU) 2016/445) are fulfilled and in so far as those undertakings are covered by the same supervision on a consolidated basis in accordance with Regulation (EU) No 575/2013, Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC of the European Parliament and of the Council

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE Page 4 of 7 (OJ L 35 of 11 February 2003, p 1), or with equivalent standards in force in a third country, as further specified in Annex I to Regulation (EU) 2016/445. (4) The exposures listed in Article 400(2)(d) of Regulation (EU) No 575/2013 shall be fully or partially exempted from the application of Article 395(1) of that Regulation, provided that the conditions set out in Article 400(3) of that Regulation, as further specified in Annex II to Regulation (EU) 2016/445, are fulfilled. (5) The exposures listed in Article 400(2)(e) to (l) of Regulation (EU) No 575/2013 shall be exempted in full, or in the case of Article 400(2)(i) they shall be exempted up to the maximum allowed amount, from the application of Article 395(1) of that Regulation, provided that the conditions set out in Article 400(3) of that Regulation are fulfilled. (6) Banks shall assess whether the conditions specified in Article 400(3) of Regulation (EU) No 575/2013, as well as the relevant Annex of Regulation (EU) 2016/445 applicable to the specific exposure, are fulfilled. The Bank of Slovenia may verify this assessment at any time and request banks to submit the documentation referred to in the relevant Annex for this purpose. CHAPTER IV Liquidity Article 10 (Article 12(1)(c)(i) of Delegated Regulation (EU) 2015/61: major stock indices in Member State or third country) For the purposes of Article 12(1)(c)(i) of Delegated Regulation (EU) 2015/61, in assessing whether shares meet the requirements to qualify as level 2B assets, banks shall take account of the following as major stock indices: (a) indices listed in Annex I to Commission Implementing Regulation (EU) 2016/1646 of 13 September 2016 laying down implementing technical standards with regard to main indices and recognised exchanges in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms (OJ L 245 of 14 September 2016, p 5); (b) indices in a Member State or third country that are not included under point (a) and that the competent authority of the relevant Member State or the relevant third country public authority has identified as major stock indices; (c) indices that are not included under points (a) or (b) and are comprised of leading companies in the relevant jurisdiction. Article 11 (Article 12(3) of Delegated Regulation (EU) 2015/61: corporate debt securities as level 2B assets) (1) Banks that in accordance with their statutes of incorporation are unable for reasons of religious observance to hold interest-bearing assets may include corporate debt securities as liquid level 2B assets, provided they meet the conditions laid down in Article 12(1)(b) of Delegated Regulation (EU) 2015/61. (2) For banks referred to in the previous paragraph, the Bank of Slovenia may periodically review the requirement under the aforementioned paragraph, and may allow an exception from Article

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE Page 5 of 7 12(1)(b)(ii) and (iii) of Delegated Regulation (EU) 2015/61 where the conditions laid down in Article 12(3) of Delegated Regulation (EU) 2015/61 have been met. Article 12 (Article 428p(10) of Regulation (EU) No 575/2013: required stable funding factors for off￾balance-sheet exposures) Unless the Bank of Slovenia determines different required stable funding factors for off-balance-sheet exposures in the scope of Article 428p(10) of Regulation (EU) No 575/2013, banks shall apply required stable funding factors that correspond to the outflow rates applied to products referred to in Article 23 of Delegated Regulation (EU) 2015/61 to such exposures. Article 13 (Article 428q(2) of Regulation (EU) No 575/2013: determination of term of encumbrance for assets that have been segregated) For the term of encumbrance of assets that have been segregated in accordance with Article 11(3) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201 of 27 July 2012, p 1) and with which banks are unable to freely dispose, the residual maturity of the liability is taken into account to which the segregation requirement relates. Article 14 (Article 428aq(10) of Regulation (EU) No 575/2013: required stable funding factors for off￾balance-sheet exposures) Banks to whom the Bank of Slovenia has granted permission to apply the simplified net stable funding requirement referred to in Chapter 5 of Title IV of Part Six of Regulation (EU) No 575/2013 shall follow the approach specified in Article 12 of this regulation mutatis mutandis in the determination of the required stable funding factors for off-balance-sheet exposures referred to in Article 428aq(10) of Regulation (EU) No 575/2013. Article 15 (Article 428ar(2) of Regulation (EU) No 575/2013: determination of term of encumbrance for assets that have been segregated) Banks to whom the Bank of Slovenia has granted permission to apply the simplified net stable funding requirement referred to in Chapter 5 of Title IV of Part Six of Regulation (EU) No 575/2013 shall follow the approach specified in Article 13 of this regulation mutatis mutandis in the determination of the required stable funding factors for off-balance-sheet exposures referred to in Article 428aq(10) of Regulation (EU) No 575/2013. CHAPTER V Transitional provisions Article 16 (deleted) Article 17 (deleted) Article 17.a

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE Page 6 of 7 (Article 495e of Regulation (EU) No 575/2013: transitional arrangements for ECAI credit assessments of institutions) By way of derogation from Article 138, point (g), of Regulation (EU) No 575/2013 institutions may continue using an ECAI credit assessment in relation to an institution which incorporates assumptions of implicit government support until 1 January 2027 1 July 2026. Article 18 (Article 500a(2) of Regulation (EU) No 575/2013: transitional provisions for large exposures) By way of derogation from Article 395(1) of Regulation (EU) No 575/2013, for exposures to central governments and central banks of Member States, where those exposures are denominated and funded in the domestic currency of another Member State, banks may incur exposures, up to the following limits: (a) 100% of the bank’s Tier 1 capital until 31 December 2025; (b) 75% of the bank’s Tier 1 capital between 1 January and 31 December 2026; (c) 50% of the bank’s Tier 1 capital between 1 January and 31 December 2027. CHAPTER VI Final provisions Article 19 (entry into force of regulation) (1) This regulation shall enter into force on the day after its publication in the Official Gazette of the Republic of Slovenia. (2) The previous paragraph notwithstanding, banks may apply this regulation as of 28 June 2021. Article 20 (cessation of validity) On the day that this regulation enters into force, the Regulation on the exercise of options and discretions under European Union law (Official Gazette of the Republic of Slovenia, Nos. 28/16, 81/18 and 126/20) shall cease to be in force. Ljubljana, 29 June 2021 Boštjan Vasle President, Governing Board of the Bank of Slovenia Regulation supplementing the Regulation on the exercise of options and discretions under European Union law (Official Gazette of the Republic of Slovenia, No. 67/22 of 13 May 2022) also includes the following final provision: "Article 2

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE Page 7 of 7 (1) This regulation shall enter into force on the fifteenth day after its publication in the Official Gazette of the Republic of Slovenia.". Regulation amending and supplementing the Regulation on the exercise of options and discretions under European Union law (Official Gazette of the Republic of Slovenia, No. 108/24 of 20 December 2024) also includes the following final provision: "Article 7 (1) This regulation shall enter into force on 1 January 2025.". Regulation amending the Regulation on the exercise of options and discretions under European Union law (Official Gazette of the Republic of Slovenia, No. 68/25 of XX September 2025) also includes the following final provision: "Article 2 (1) This regulation shall enter into force on the fifteenth day after its publication in the Official Gazette of the Republic of Slovenia.".