2020-02-19

Regulation on the application of the Guidelines on institutions’ stress testing (EBA/GL/2018/04)

The Bank of Slovenia issued a regulation to formally apply the European Banking Authority's Guidelines on institutions’ stress testing within Slovenia. This measure requires authorized banks and savings banks to fully incorporate the EBA's organizational requirements and methodologies into their risk management processes. Additionally, the central bank must align its supervisory powers and tasks with the guidelines when exercising oversight over these institutions.

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Page 1 of 2  Official Gazette of the Republic of Slovenia, No. 8/19 of 7 February 2019 (in force since 8 February 2019) Pursuant to the third paragraph of Article 13 of the Banking Act (Official Gazette of the Republic of Slovenia, Nos. 25/15, 44/16 [ZRPPB], 77/16 [ZCKR], 41/17 and 77/18 [ZTFI-1]; 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], 59/11 and 55/17), the Governing Board of the Bank of Slovenia hereby issues the following REGULATION on the application of the Guidelines on institutions’ stress testing (EBA/GL/2018/04) Article 1 (purpose and field of application of guidelines) (1) Pursuant to Article 16(1) 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 19 July 2018 the European Banking Authority published the Guidelines on institutions’ stress testing (hereinafter: the guidelines) on its website. The guidelines referred to in the first sentence of this paragraph set out common organisational requirements, methodologies and processes for the performance of stress testing by institutions, taking into account capital adequacy and risk management, as part of their risk management processes (institutions’ stress testing). (2) The guidelines are addressed to competent authorities and institutions as defined in point (i) of Article 4(2) of Regulation (EU) No 1093/2010, and to financial institutions as defined in Article 4(1) of Regulation (EU) No 1093/2010 that are also classed as institutions in accordance with point 3 of Article 4(1) of Regulation (EU) No 575/2013. 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 (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. (3) In exercising its supervisory powers and tasks in accordance with the ZBan-2, 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.

Page 2 of 2 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. Ljubljana, 5 February 2019 Boštjan Vasle President, Governing Board of the Bank of Slovenia