EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 8 June  2016  
on consumer credit  
(CON/20 16/31) 
 
Introduction and legal basis  
On 28 April 2016  the European Central Bank (ECB) received a request from  the Slovenian Ministry of 
Economic Development and Technology  for an opinion on a draft law on consumer credit (hereinafter the 
‘draft law’)1. 
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the third indent  of Article  2(1) of Council Decision 98/415/EC2, as 
the draft law  relates to Banka Slovenije. In accordance with the first sentence of Article 17.5 of the Rules 
of Procedure of the European Central Bank, the Governing Council has adopted this opinion.  
 
1.  Purpose of the draft la w  
1.1 The Slovenian Law on consumer credit  (hereinafter the ‘Law on consumer credit’)3 currently 
implements Directive 2008/48/EC of the European Parliament and of the Council4 and also 
contains a number of specific rules concerning consumer credit agreements relating to immovable 
property. The main purpose of the draft law is to implement  Directive 2014/17/EU of the European 
Parliament and of the Council  in Slovenian law5. The main effect of the draft law is to amend, by 
way of a recast,  the existing frame work for consumer credit agreements relating to immovable 
property.  
1.2 Under the current Law on consumer credit , entities authorised to provide consumer credit by the 
Ministry of Economic Development and Technology , banks authorised to provide banking ser vices 
in accordance with the Law on banking6 and a few other entities are per mitted  to engage in 
consumer lending, including as regards  immovable property7. No authorisation is currently required 
for intermediaries  arranging consumer credit . However, inter mediaries must fulfil certain conditions 
in the pursuit of their activity. The supervision of consumer credit providers authorised by the 
                                                 
1  Predlog zakona o potrošniških kreditih (ZPotK- 2). 
2  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42).  
3  Zakon o potrošniških kreditih (ZPotK -1) (Ur. l. RS No 59/10, 77/11, 30/13 and 81/15).  
4   Directive 200 8/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for 
consumers and repealing Council Directive 87/102/EEC (OJ L 133, 22.5.2008, p.66).  
5  Directive 2014/17/EU of the European Parliament and the Council of 4 February 2014 on credit agreements for 
consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and 
Regulation (EU) No 1093/2010 (OJ L 60, 28.2.2014, p. 34).  
6  Zakon o bančništvu (ZBan -2) (Ur. l. RS  No 25/15) . 
7  Articles 29 and 30 of the Law  on consumer credit . 
ECB -PUBLIC  
2 Ministry  of Economic Development and Technology  and of their intermediaries is entrusted to the 
Market Inspectorate8. The supervision of  credit institutions and entities intermediating consumer 
credit for credit institutions  is entrusted to Banka Slovenije9. The Information Commissioner 
supervises compliance with rules on the collection and processing of personal data10. 
1.3 The draft law introduces  new conditions for the provi sion and intermediation of consumer credit 
relating to immovable property . In particular, i n order  to increase consumer protection,  only the 
following groups of entities will be permitted  to provide c onsumer credit relating to immovable 
property : (a) authorised credit institutions ; (b) authorised non-bank financial institutions whose 
exclusive or main activity is financial leasing and (i)  in which a bank has  at least a 20% share of the 
institution’s  voting rights or capital , or (ii) whose total balance sheet is at least EUR 50 000 000 
(hereinafter ‘financial leasing companies ’); and ( c) certain other entities  which do not need to be 
authorised  (e.g. employers granting credit to their employees free of i nterest or at an annual 
percentage rate of charge lower  than those applied by credit institutions )11. Intermediaries of 
permitted providers will also be required to obtain authorisation in order to arrange consumer credit 
relating to immovable property12. 
1.4 In this context, i n addition to its existing supervisory tasks13, Banka Slovenije will become 
responsible for: (a) authorising financial leasing companies to provi de consumer credit relating to 
immovable property14; (b)  authoris ing intermediaries  arranging consumer credit relating to 
immovable property15; and (c) supervis ing financial leasing companies  and the ir intermediaries with 
respect to consumer credit relating to immovable property . In addition, Banka Slovenije will: 
(a) have powers to impose supervis ory measures and sanctions on supervised entities16; (b) act as 
a competent authority i n the context of cross -border intermediation of consumer credit relating to 
immovable property17; (c) serve  as a single contact point for cooperation between competent 
authorities of different Member States for the purposes of Directive 2014/17/EU18; and (d) establish  
and maintain a public register of financial leasing companies granting consumer credit  relating to 
immovable property and of intermediaries arranging consumer credit relating to immovable 
property19. 
1.5 Under the Law  on consumer credit , as a general  rule, consumer loans  may be transferred from  
consumer credit providers only to entities that are also per mitted to act as consumer credit 
providers. However , this rule does  not apply to credit institutions , which  may thus transfer 
                                                 
8  Article 34 of the Law  on consumer credit . 
9  Article 33 of the Law  on consumer credit .  
10  Article 36 of the Law  on consumer credit . 
11  Article 58 of the draft law.  
12  Article 62(1) of the draft law.  
13  Article 29 and 33 of the Law  on consumer credit  in conjunction also with the Law on banking.  
14  Article 58(1), third indent, in conjunction with Article 66 of the draft law.  
15  Article 62 of the draft law.  
16  Article s 77 and 83 and also Articles 71 and 65 of the draft law . 
17  Article 72, 73, 77 and 84 to 87 of the draft law.  
18  Article 74 of the draft law.  
19  Articles 68 and 63 of the draft law.  
ECB -PUBLIC  
3 consumer loans to any third party20. With regard to entities that are not permitted to act as 
consumer credit providers , the draft law  limits the scope of eligible third parties  to: (a) secur itisation 
special purpose vehicles , (b) the Slovenian Bank Asset Management Company (BAMC), and 
(c) other entities managing impaired assets of banks21. These entities must  fulfil the same 
obligations towards the consumer as a consumer credit provider , and m ay further transfer the 
credit only to a permitted consumer credit provider22. Under  the draft law, Banka Slovenije  will be 
responsible for the supervis ion of  the above entities with respect to consumer credit23.  
 
2. General observations  
2.1 This opinion does not address whether the draft law effectively implements Directive 2014/17/EU  in 
Slovenian law . The ECB will only assess  those provisions of the draft law that may impact on the 
role and tasks of Banka Slovenije as a central bank , a financial supervisory authority  and as a 
member of the Eurosystem and the European System of Central Banks (ESCB).   
2.2 The draft law broadens and expands Banka Slovenije ’s current supervisory functions and activities  
in the consumer credit field beyond its existing responsi bilities with respect to credit institutions and 
their intermediaries,  by conferring on it the following tasks: 
 (1) authoris ing financial leasing companies , as regards the provision of consumer credit  
relating to immovable property , and intermediaries that arrange consumer credit  relating 
to immovable property ; 
 (2) supervis ing financial leasing com panies and their intermediaries with respect to the 
consumer protection- related obligations in the field of consumer credit relating to 
immovable property ; 
 (3) supervisin g certain entities permitted to be transfer ees of  consumer credit  from entities 
authorised to perform banking activity or to provide financial services  listed  in paragraph 
1.5. 
 The ECB underlines that, in the context of a proposed conferral of new tasks on an ESCB member, 
it is necessary to assess whether this contravenes  the prohibition of monetary financing under 
Article 123 of the Treaty. T he ECB has developed the guidance set out in paragraphs 2.2.1 to 2.2.3   
on the basis of which it may decide whether a new task conferred on a national central bank (NCB) 
is to be considered a central banking task or a government task for the purposes of assessing such 
conferral of tasks against the prohibition of monetary financing24. 
2.2.1  General considerations  
First, the systematic categorisation of tasks assigned to NCBs as central banking or government 
tasks applies to genuinely new tasks that did not exist in the past or did not form an integral part of 
the central banking tasks already assigned to the NCB in the past. In recognition of the different 
                                                 
20  Article 20(4) of the Law  on consumer credit . 
21  Article 23(4) of the draft law.  
22  Article 23(5) of the draft law.  
23  Article 77(2)(3) in conjunction with Article 23 and of the draft law.  
24  See Opinion CON/2015/22. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 
ECB -PUBLIC  
4 Member States’ legal frameworks, central banking traditions and national set -ups, the tasks 
currently discharged by an NCB as central banking tasks are not reviewed and re- categorised, but 
may be reassessed if their substance is amended.  
Second, it needs to be emphasised that when Member States decide to confer new tasks on their 
NCBs, due regard must be given to the role of the NCB as part of the ESCB or Eurosystem, as 
applicable, and to the requirement of c entral bank independence. The principle of financial 
independence, which is a key aspect of the principle of central bank independence as laid down in 
Article 130 of the Treaty, requires that the Member States may not put their NCBs in a position 
where the y have insufficient financial resources to carry out their ESCB - or Eurosystem -related 
tasks, as applicable. Accordingly, an NCB must have sufficient financial means not only to perform 
its ESCB - or Eurosystem -related tasks but also its national tasks (e.g. financing its administration 
and own operations)25. Where an NCB considers that the allocation of a new task would impinge 
on its financial independence, because it would not have sufficient means to focus primarily on its ESCB-  or Eurosystem -related task s, or that the discharge of the new task would impose a 
disproportionate burden on it, the NCB should be able to object to the new task being allocated to 
it.  
Third, central banking tasks comprise in particular those tasks that are related to the tasks li sted in 
Article 127(2), (5) and (6) of the Treaty.  
Fourth, new tasks conferred on an NCB which are atypical of NCBs’ tasks, or which are clearly 
discharged on behalf of and in the exclusive interest of the government or of other public entities, 
should be considered as government tasks.  
2.2.2  Specific considerations  
Consumer protection tasks related to financial services are central banking tasks to the extent that these complement existing supervisory powers and thus contribute to the soundness of the 
financial market s and the preservat ion of confidence in the market place.   
An important criterion for qualifying a new task as a government task is the impact of the task on 
the institutional, financial and personal independence of the NCB. In particular, the f ollowing should 
be taken into account.  
First, it should be assessed whether the performance of the new task creates inadequately 
addressed  conflicts of interests with existing central banking tasks, without necessarily 
complementing the NCB’s existing cent ral banking tasks. If a conflict of interest arises between 
existing and new tasks, there should be sufficient mitigation measures in place to adequately address that conflict. Complementarity between the new task and existing central banking tasks 
should not, however, be interpreted broadly, as this could lead to the creation of an indefinite chain 
of ancillary tasks. The assessment of the complementarity of the new task should also take into 
account the financing of that task. In the event of a conflict of interest between prudential 
supervision and consumer protection,  prudential supervisory considerations must prevail
26. 
                                                 
25  See the ECB’s 2014 C onvergence Report, p. 25.  
26  See paragraph 3.1 of Opinion CON/2015/21.  
ECB -PUBLIC  
5 Second, it should be assessed whether without new financial resources the performance of the 
new task places a disproportionate burden on the financial or organisational capacity of the NCB 
and may negatively impact on its capacity to properly perform  its existing central banking tasks.  
Third, it should be assessed whether the performance of the new task is aligned with the 
institutional s et-up of the NCB, in particular as regards central bank independence and 
accountability considerations.  
Fourth,  it should be assessed whether the performance of the new task entails substantial financial 
risks.  
Fifth,  it should be assessed whether the perf ormance of the new task exposes the members of the 
NCB’s decision -making bodies to political risks that are disproportionate and could also impact on 
their personal independence and, in particular, the guarantee of the Governor’s term of office under 
Article 14.2 of the Statute of the European System of Central Banks and of the European Central 
Bank.  
2.2.3  The final assessment of the qualification of a task given to an NCB as either falling within the scope 
of a central banking task or a government task wil l be guided by the objective of ensuring the 
consistent application of the prohibition of monetary financing within the Eurosystem and the 
ESCB.  
 
3. Specific observations  
3.1 Conferral on Banka Slovenije of new tasks 
The draft law broadens  Banka Slovenije’s current supervisory  responsibilities  in the field of  
consumer credit to include the task s of: authorising and supervising non- bank financial leasing  
companies providing consumer  credit relating to immovable property , and intermediaries arranging 
consumer credit relating to such property ; and supervising transferees of consumer credit.  In the 
light of the guidance set out in paragraphs  2.2.1 to 2.2.3, it must  be assessed whether Banka 
Slovenije ’s new tasks could constitute a breach of the monetary financing pr ohibition.  
3.2 Principle of financial independence   
 The principle of financial independence requires NCBs to have sufficient means to carry out not 
only their ESCB -related tasks but also their national tasks, both from an operational and financial 
perspec tive27. In this regard the ECB notes that, under the draft law, financial leasing companies 
that may provide consumer credit relating to immovable property and intermediaries  arranging such 
consumer credit  will be  required to  pay to Banka Slovenije  a fee  determined by  Banka Slovenije for 
their authorisation28. In addition, authorised financial leasing companies and authorised 
intermediaries arranging consumer credit relating to immovable property will also pay to Banka 
Slovenije an annual fee to cover  the act ual costs incurred by  Banka Slovenije in the performance of 
its supervisory tasks29. Whilst  the ECB  welcom es such  provisions of the draft law , it note s that the 
draft law does not specify how costs related to the supervision of the entities that are permitt ed to 
                                                 
27  See ECB ’s 2014 Convergence Report, p. 25.  
28  Article 76 of the draft law.  
29  Article 78 of the draft law.  
ECB -PUBLIC  
6 acquire consumer loans from banks, such as the BAMC or securitisation special purpose vehicles , 
are to be financed. In this regard the ECB invites the consulting authority to consider extending the 
cost-recovery regime to cover transferees of consumer credit.  
3.3 Links to tasks listed in Article 127(5) of the Treaty  
The authorisation and supervision of non- bank financial leasing companies  providing consumer 
credit relating to immovable property  and of intermediaries  arranging such consumer credit  can be 
considered as tasks related to those referred to in Article 127(5) of the Treaty, based on the 
understanding that they are  complementary to the supervisory tasks exercised by the NCB, 
particularly where, as in this case, Banka Slovenije already supervi ses credit institutions, including 
their consumer credit and financial leasing activities  and their intermediaries, and has the task of 
ensuring the stability of the financial system30. The new tasks are also complement ary to  its 
existing supervisory powers  because they are financed through fees in a manner similar to the 
system  used for financing the supervision of entities actively carrying out banking activity31. 
3.4 Atypical tasks 
A number of Member States have conferred on their NCBs supervisory tasks related to the 
provision of consumer credit32. The ECB has generally accepted the allocation of such tasks to 
NCBs provided they do not interfere with the performance of the NCB’s ESCB -related tasks33. The 
tasks of an NCB with regard to the supervision of non- bank consumer credit providers and 
intermediaries can therefore, if this condition is met, be regarded as tasks not atypical of a central 
bank, particularly if, as in the case of Banka Slovenije,  it has a statutory responsibility for banking 
supervision, i ncluding supervising the provision of consumer credit and financial leasing, and 
financial stability34.  
3.5  Discharge of tasks on behalf of and in the exclusive interest of the Government or of other public 
entities  
Banka Slovenije is designated by the dr aft law as the sole supervisory authority for financial leasing 
companies and intermediaries  arranging consumer credit relating to immovable property, and of 
certain non- bank transferees of consumer credit,  in its own name and not on behalf of any other 
authority35. There is no indication that, in carrying out its supervisory functions, Banka Slovenije 
would act exclusively in the interest of another public entity.  
                                                 
30  In this regard, see paragraph 3.3 of Opinion CON/2015/54; paragraph 3.1. 2 of Opinion CON/2015/37; paragraph 
3.1.2 of Opinion CON/2015/45; paragraphs 3.2 and 3.3 of Opinion CON/2015/21.   
31  Article 238 of the Law on banking.  
32  See paragraph 3.4 of Opinion CON/2015/54.  
33  See, for example, paragraphs 2.1 to 2.3 of Opinion CON/2006/38, paragraphs 2.1 and 2.2 of Opinion CON/2006/47, 
paragraphs 2.1 to 2.5 of Opinion CON/2007/29,  and paragraph 2 of Opinion CON/2009/71.  
34  Article  33 of the Law  on consumer credits , the Law on banking and the Law on Banka Slovenije ( Zakon o Banki 
Slovenije) (ZBS- 1) (Ur. l. RS No 72/06 –  official consolidated text, and 59/11) . 
35  With Information Commissioner supervising compliance with the rules on the collection and processing of personal 
data (Article 77(5) of the draft law ). 
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7 3.6 Extent to which the performance of tasks is aligned with Banka Slovenije ’s institutional s et-up, in 
particular as regards accountability considerations  
Given the complementarity of the new task s with Banka Slovenije’s existing supervisory tasks, in 
particular in the field of supervision of credit institutions, including their consumer credit an d 
financial leasing activities , and their intermediaries , the new task s appear  to broadly fit into Banka 
Slovenije ’s institutional set -up. However, the draft law does not contain provisions clarifying the 
tools and powers nec essary  for Banka Slovenije to effectively perform its supervis ory tasks in 
relation to transferees of consumer credit , such as the BAMC and securitisation special purpose 
vehicles,  which may expose Banka Slovenije to reputational risks . 
3.7 Extent to which the performance of tasks is pr oportionate to Banka Slovenije ’s financial and 
operational capacity and its ability to perform its ESCB -related tasks  
 As noted above, since  not all of Banka Slovenije’s costs related to its new tasks are covered under  
the draft law  (which  does not specify  whether the costs of supervision of transferees of consumer 
credits, such as the BAMC or securitisation special purpose vehicles, would be reimbursed), the 
ECB invites the consulting authority to consider introduc ing the same mechanism  for all supervised 
entities  as regards the financing of costs incurred by Banka Slovenije in the performance of its new 
tasks . 
3.8 Extent to which the performance of tasks entails substantial financial risks  
The draft law does not contain any specific provisions on liability for the performance of supervisory 
tasks. Banka Slovenije ’s potential liability for the performance of the new tasks given to it under the 
draft law will be thus subject to the rules on liability for damage caused in  the exercise of public  
authority36.  
3.9 Concl usion  
The ECB considers that there are grounds for regarding Banka Slovenije ’s new task s of authoris ing 
financial leasing companies providing financial leasing services relating to immovable property to 
consumers and intermediaries arranging consumer credit relating to immovable property, as well 
as supervis ing these financial leasing companies , their intermediaries, and certain transferees of 
consumer credit transferred by  entities authorised to perform banking activity or to provide financial 
services, as central banking task s, in the sense that they can be regarded as complementing 
Banka Slovenije ’s existing banking supervisory functions , including  in the area of consumer credit . 
In addition, the fact that the supervised entities will contribute to the c osts incurred by Banka 
Slovenije  in performing its new supervisory tasks, by paying authorisation and annual supervisory 
fees, which will also have a positive impact on Banka Slovenije ’s financial capacity to assume 
these tasks , may be regarded as reflecti ng such complementarity . However,  the draft law does not 
contain provisions clarifying the tools and powers necessary for Banka Slovenije to effectively 
oversee  compliance by certain transferees of consumer credits, such as the BAMC and 
securitisation spec ial purpose vehicles, with consumer protection rules at the operational level, 
which may expose Banka Slovenije to reputational risks.  In addition, the draft law does not specify 
                                                 
36  Article 26 of the Slo venian Constitution in conjunction with the Code of Obligations ( Obligacijski zakonik ) (OZ) (Ur. l. 
RS No 97/07 –  official consolidated text).  
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8 how the supervisory costs incurred  by Banka Slovenije in relation to these entities are to be 
reimbursed.  
 
This opinion will be published on the ECB’s website.  
  
Done at Frankfurt am Main, 8 June 2016.  
 [signed]  
 
The President of the ECB  
Mario DRAGHI