Slovenian stability review scolds ‘inactive and irresponsible' bank owners
Slovenia's slide back into recession last year has exposed the banking system's over-dependence on international wholesale funding, as well as excessive leverage in the corporate sector, according to the Bank of Slovenia's latest financial stability review.
With domestic loans accounting for 59% of corporate debt, Slovenia's banking system is heavily exposed to the country's business sector, which has an average debt-to-equity ratio of 135%.
Meanwhile, Slovenian banks' rising funding costs have
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