EN 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 1 June 2010 
on amendments to several provisions of the Law on banking 
(CON/2010/46) 
 
Introduction and legal basis  
On 4 May 2010, the European Central Bank (ECB) received a request from the Slovenian Ministry of 
Finance for an opinion on a draft law amending the Law on banking (hereinafter the ‘draft law’). 
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 and sixth indents of Article 2(1) of Council Decision 
98/415/EC of 29 June 1998 on the consultation of  the European Central Bank by national authorities 
regarding draft legislative provisions1, as the draft law relates to Banka Slovenije and to rules applicable 
to financial institutions insofar as they materially influence the stability of financial institutions and 
markets. In accordance with the firs t 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 law 
1.1 The draft law implements provisions of several directives into Slovenian legislation (Directives 
2009/111/EC2, 94/19/EC3, 2009/14/EC4 and 2010/16/EU5). However, the consulting authority 
mentions in its consultation request that the draft law also includes a number of provisions 
amending the current Law on banking6 that do not relate to transposition of directives. In line with 
Article 1(2) of Council Decision 98/415/EC, th is opinion only covers the latter provisions. 
1.2 Several provisions of the draft law are connect ed with the rules governing the Slovenian deposit 
guarantee scheme as laid down in the Law on banking.  It is an ex post financed scheme, with the 
necessary funds being provided by the participating credit institutions and, in certain cases, also by 
the Slovenian State. The draft law clarifies the treatment of certain categories of deposits, taking 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  Directive 2009/111/EC of the European Parliament and of the Council of 16 September 2009 amending Directives 
2006/48/EC, 2006/49/EC and 2007/64/EC as regards banks affilia ted to central institutions, certain own funds items, 
large exposures, supervisory arra ngements, and crisis management (OJ L 302, 17.11.2009, p. 97). 
3  Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes 
(OJ L 135, 31.5.1994, p. 5). 
4  Directive 2009/14/EC of the European Parliament and of  the Council of 11 March 2009 amending Directive 94/19/EC on 
deposit-guarantee schemes as regards the coverage level and the payout delay (OJ L 68, 13.3.2009, p. 3). 
5  Commission Directive 2010/16/EU of 9 March 2010 amending Di rective 2006/48/EC of the European Parliament and of 
the Council as regards the exclusion of a certain institutio n from the scope of application (OJ L 60, 10.3.2010, p. 15). 
6  Zakon o ban čništvu , published in Uradni list Republike Slovenije  No 131/2006.  
2 into account their nature and their holders and assigns Banka Slovenije certain new and modified 
tasks relating to the administration of the scheme7. In addition, certain existing provisions of the 
Law on banking which, as stated in the draft law’s explanatory memorandum, might give rise to concerns regarding monetary fina ncing by Banka Slovenije of the State’s obligations under the 
scheme are amended.  
1.3 Pursuant to the Law on banking, credit instituti ons have established a system for the exchange of 
information on the credit standing of their clients.  The draft law includes certain amendments with 
respect to the information to be entered and processed in the system and introduces, among other 
things, a ‘credit score’ indicating a client’s creditw orthiness, which is determined on the basis of a 
common methodology. The draft law also includes a number of minor and editorial amendments to 
the Law on banking. 
 2. General observation The ECB would like to point out that any widening of  Banka Slovenije's tasks has to be supported by 
ensuring sufficient human and financ ial resources, both in terms of quan tity and quality, so as to enable 
performance of these tasks without affecting Banka Sloven ije’s capacity to carry out its European System 
of Central Banks-related tasks. 
 3. Compliance with the prohibition of monetary financing 3.1 Pursuant to the Law on banking in force today, as amended in the relevant part by an amendment to 
the Law on banking in 2008
8, which was not subject to a consu ltation procedure with the ECB, the 
Slovenian State shall guarantee repayment of (i) guaranteed deposits held at a bank subject to 
bankruptcy proceedings above the amount covered by the inter-bank deposit guarantee scheme; and 
(ii) guaranteed deposits up to th e abovementioned amount if banks with their head offices in the 
Republic of Slovenia cannot provide sufficient funds9. From the date of the initiation of bankruptcy 
proceedings, Banka Slovenije will assume on its ow n behalf and for the account of the Slovenian 
State the obligation to repay such guaranteed deposits10. These provisions imply that Banka 
Slovenije is obliged to repay the guaranteed depos its before obtaining the relevant funds from the 
guarantor, i.e. the Slovenian State. This raises the issue of compatibility with the prohibition on 
monetary financing under Article 123 of the Trea ty, according to which the ECB and the national 
central banks (NCBs) may not, inter alia , provide overdraft facilities or any other type of credit 
                                                 
7  These tasks include the adoption of implementing measures, mon itoring of the scheme’s mechanisms, processing of 
information from participating institutions and informing de positors and the public about ba nkruptcy proceedings and the 
conditions for exercising the right to repayment of guaranteed deposits. 
8  Zakon o spremembah in dopolnitvah Zakona o ban čništvu  (ZBan-1B) ( Uradni list Republike Slovenije  No 109/2008).  
9  Article 313(1) and (2) of the Law on banking. 
10  Article 315(5) of the Law on banking. 
3 facility in favour of the public sector11. The Law on banking can be understood as providing for 
financing of the deposit guarantee scheme by Banka Slovenije, which would be incompatible with 
the monetary financing prohibitio n under Article 123 of the Treaty12. 
3.2 In view of the above, the ECB welcomes the dr aft law according to which the Slovenian State will 
have to ‘provide funds’ rather than only a ‘gua rantee’ in the event of activation of the deposit 
guarantee scheme13, while the provisions obliging Banka Slovenije to provide funds for the 
repayment of guaranteed deposits of insolvent bank s, on its own behalf against a State guarantee, 
are removed14. As a consequence, any payouts by Banka Slovenije under Article 315(3) of the Law 
on banking will always be made using funds prov ided by participating credit institutions (or 
obtained by realising their assets) and, if neces sary, funds provided in advance by the Slovenian 
State. The ECB is of the view that these draft am endments establish an assu rance that there will be 
no financing of the deposit guarantee scheme cont rary to the abovementioned Treaty requirements. 
3.3 In line with these draft amendments and for re asons of legal clarity, the ECB would recommend an 
alignment of the wording of other related provi sions of the Law on banking to reflect that the 
Slovenian State is providing funds rather than a guarantee15. 
 This opinion will be published on the ECB’s website.   Done at Frankfurt am Main, 1 June 2010. 
 
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET 
                                                 
11  See also Council Regulation (EC) No 3603/93 of 13 Decem ber 1993 specifying definitions for the application of the 
prohibitions referred to in Articles 104 and 104b(1) of the Tr eaty [now Articles 123 and 125(1) of the Treaty on the 
Functioning of the European Union] (OJ L 332, 31.12.1993, p. 1). 
12  National legislation providing  for the financing by an NCB of a national de posit insurance scheme for credit institutions 
would only be compatible with the moneta ry financing prohibition if it were s hort term, addressed urgent situations, 
systemic stability aspects were  at stake and decisions were at the NCB’s discretion; see the ECB Convergence Report of 
May 2010, p. 33. Relevant ECB opinions in this area are, e.g., paragraphs 11-14 of Opinion CON/2001/32; paragraphs 
11-13 of Opinion CON/2005/50; paragra phs 2.1-2.3 of Opinion CON/2007/26; paragraphs 2.2-2.8 of Opinion 
CON/2008/5; and paragraph 3.2 of Opin ion CON/2008/69. All ECB opinions are available on the ECB website at 
www.ecb.europa.eu. 
13  Article 63 of the draft law, amending Article 313(2) of the Law on banking, and Article 66 of the draft law, amending 
Article 316(1) of the Law on banking. 
14  Article 65 of the draft law. 
15  See, in particular, Article 66 of the draft law, amending Article 316(1) of the Law on banking, and its erroneous reference 
to a ‘guarantee’ in relation to Article 313(2) of the Law on banking.