The Decisions adopted by the Governing Board on the occasion of its 294th regular meeting on 22nd July 2004

The Decisions adopted by the Governing Board on the occasion of its 294th regular meeting:
The Governing Board of the Bank of Slovenia recognises that, since Slovenia´s entry into ERMII, the exchange rate against the euro has been floating around its parity, reflecting the expected changes with reference to ERMII.

On its 294th session, the Governing Board of the Bank of Slovenia inter alia amended the Decision on the Narrowest Liquidity Band Which a Bank Must Provide. Since the modifications of the Banking Act enable savings banks to carry out transactions in foreign currency, the aforementioned Decision needed to be amended. Namely, savings banks had not carried out transactions in foreign currency until the modifications of the Banking Act took effect; therefore, a special Decision, the Decision on the Tolar Maturity Ladder, applied to them, requiring them to provide a lower liquidity ratio. Since the modifications of the Banking Act abolished the difference between banks and savings banks, the conditions for providing liquidity therefore have to be made equal. Furthermore, the amendment to the aforementioned Decision also enhances the set of securities eligible to be included in the first class of securities, having security or another form of State guarantee. Until now, only debt securities issued by the Republic of Slovenia have been included in the first class of the maturity ladder.

At its today´s session, the Governing Board of the Bank of Slovenia also modified a Decision, stipulating the conditions for banks and savings banks to carry out banking and other financial services and documentation necessary to assist the Bank of Slovenia in ascertaining the eligibility to carry out services of this kind within the competence given by authorisation. The modifications of the aforementioned Decision thoroughly lay down the conditions to be met by banks and savings banks before starting a launch of new financial services on the market. A bank or savings bank must in writing notify the Bank of Slovenia of the aim of launching a new service or product by making a detailed plan, setting out the method of its risk management. Before launching a new service, the Management Board of a bank or savings bank has to provide adequate technical equipment, adequate manpower with proper qualifications and systems installed to monitor and manage risk. After a successfully undergone probation period, the Management Board of a bank or savings bank must adopt a Decision on meeting the conditions and notify the Bank of Slovenia thereof 14 days before starting a launch of a new service.

The members of the Governing Board were also acquainted with the renewed system of reporting on the use of modern payment instruments. A renewal of reporting is in compliance with the regulations of the European Central Bank and enables a more thorough control of monitoring new, modern dematerialised instruments and methods, as well as the occurrence of electronic money.

The Governing Board of the Bank of Slovenia also dealt with the Memorandum of Understanding between the Bank of Slovenia, Ministry of Finance and Statistical Office of the Republic of Slovenia in the field of macroeconomic and financial statistics, regulated via the regulations of the European Union.