Financial regulation in Slovenia

Abstract

The presentation of financial regulation in Slovenia and its adaptation to the EU regulation reveals the importance of understanding the rationales behind the changes of the regulation and their consequences. They both depend on social and economic environment in the country, on its history, and on existing economic and political situation. The same legal rules and institutions in a new market economy do not lead to the same results as in a developed old market economy. The performances crucially depend on norms and patterns of social behavior created over many years. Due to interplay of internal and external factors, four distinctive periods of Slovenian banking regulation could be distinguished with a clear pattern of transition from authentic Slovenian financial regulation, that is, the period of autonomous and powerful Bank of Slovenia, which was aware of the development of financial regulation elsewhere when creating and applying it in the country, to the period of gradual adaptations of Slovenian financial regulation to EU and EMU financial regulation. Affected by the 2008 crisis, Slovenia witnessed the period of often chaotic regulatory reactions of the Slovenian authorities, while the most drastic reform of Slovenian banking took place in 2013 and 2014.