Press release - Slovenia and Cyprus cannot be compared
SLOVENIA AND CYPRUS CANNOT BE COMPARED
(a clarification of developments in Cyprus)
The situation in Slovenia cannot be compared to that in Cyprus. The relative size of the Slovenian banking system is not comparable to the size of the banking system in Cyprus, and neither are the business models of the Cypriot banks directly comparable to those of banks in Slovenia.
The total assets of the Slovenian banking system stood at 135% of GDP in 2012, much less than the equivalent figure in Cyprus of 800%.
A feature of the Cypriot banking system is the favourable tax regime for investors there, which has long been subject of discussions between Cyprus and the EU.
Deposits by foreign non-monetary financial entities accounted for less than 1% of Slovenian banks’ financial liabilities, while one of the reasons cited by negotiators in their arguments for the levy on Cypriot bank deposits was the high proportion of deposits by foreign citizens. In contrast to Cyprus, the proportion of deposits in Slovenian banks by non-residents is merely symbolic.
Bank deposits in the Slovenian banking system are safe and stable: Slovenian households and non-profit institutions serving households held EUR 15,160 million of bank deposits at the end of January 2013, equivalent to 43% of GDP. Other deposits at banks amounted to approximately EUR 23.5 billion, or 66% of GDP. Household deposits at banks in Slovenia have been gradually increasing since November 2012, and increased by more than EUR 100 million in January alone.
More detailed figures on liabilities to individual sectors are available on the Bank of Slovenia website in the Bank of Slovenia Monthly Bulletin (Table 1.6 Selected liabilities of other monetary financial institutions, breakdown by sector: http://www.bsi.si/iskalniki/publications-montly-bulletin.asp?MapaId=210 ) or in the data series (Money and monetary financial institutions: http://www.bsi.si/en/financial-data-r.asp?MapaId=982#14091 ).
In accordance with the Banking Act and EU Directive 94/19/EC, a deposit guarantee scheme is in place in Slovenia for deposits of up to EUR 100,000 at banks and savings banks for each individual depositor. The deposit guarantee scheme is a joint and several guarantee by all banks and savings banks, which means that in the event of pay-out under the deposit guarantee scheme, i.e. in the event of bankruptcy proceedings being initiated against one of the banks or savings banks in the Slovenian scheme, all banks and savings banks (other than the bank in bankruptcy) will settle the amount proportionately according to their share of the guaranteed deposits. In the event of the banks being unable to contribute sufficient funds to pay out the guaranteed deposits, the State would temporarily provide the funds, and would later recover the corresponding amounts from the banks. For more information about the guarantee scheme see the Bank of Slovenia website at http://www.bsi.si/en/guarantee-scheme.asp?MapaId=1047 .