Regulation on the Application of EBA Guidelines on Management of Non-Performing and Forborne Exposures

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE  Official Gazette of the Republic of Slovenia, No. 35/19 of 31 May 2019 (in force since 1 June 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, 77/18 [ZTFI-1] and 22/19 [ZIUDSOL]; 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 management of non-performing and forborne exposures (EBA/GL/2018/06)
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), as last amended by Regulation (EU) No 2018/1717 of the European Parliament and of the Council of 14 November 2018 amending Regulation (EU) No 1093/2010 as regards the location of the seat of the European Banking Authority (OJ L 291 of 16 November 2018; p 1; hereinafter: Regulation (EU) No 1093/2010), on 31 October 2018 the European Banking Authority published the Guidelines on management of non-performing and forborne exposures (EBA/GL/2018/06; hereinafter: the guidelines) on its website. (2) The guidelines referred to in the first paragraph of this article specify sound risk management practices for credit institutions for managing non-performing exposures, forborne exposures and foreclosed assets. These guidelines also provide competent authorities with guidance on assessing credit institutions’ risk management practices, policies, processes and procedures for managing non-performing exposures and forborne exposures as part of the supervisory review and evaluation process (SREP). (3) The guidelines are addressed to:

1. competent authorities as defined in point (i) of Article 4(2) of Regulation (EU) No
   1093/2010; and
2. credit institutions as defined in point 1 of Article 4(1) 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 (OJ L 176 of 27 June 2013, p 1), last amended by Regulation (EU) 2019/630 of the European Parliament and of the Council amending Regulation (EU) No 575/2013 as regards minimum loss coverage for non-performing exposures (OJ L 111 of 25 April 2019, p 4).

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:

THIS TEXT IS UNOFFICIAL TRANSLATION AND MAY NOT BE USED AS A BASIS FOR SOLVING ANY DISPUTE

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 are under the direct supervision of the Bank 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.
   Article 3
   (definition of threshold referred to in Article 189 of guidelines) The individual valuation and revaluation of real estate collateral shall be undertaken by an independent appraiser for NPEs whose gross value exceeds EUR 300 thousand.
   Article 4
   (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 30 June 2019. Ljubljana, 28 May 2019 Boštjan Vasle President, Governing Board of the Bank of Slovenia