Credit and solvency risk at Slovenian banks declined in December following the transfer of the country's two largest banks' non-performing claims to the Bank Asset Management Company (BAMC), a bad bank set up by the government, according to a Bank of Slovenia report.

"The additional level of capitalisation at the banks provides a good basis for increased lending to corporates that show healthy creditworthiness," the report states. "The banks themselves can be a major factor in preventing further