Bad bank and other possible banksʹ rescuing models - the case of Slovenia

Tanja Markovič-Hribernik (Author), Matej Tomec (Author)

Abstract

During the economic crisis, Slovenia has transformed from one of the most successful new EU Member States into one of the most pr oblematic ones. The reason for this is largely extensive banking problems, that continue to cause uncertainty on financial markets and adversely affect the rating of the country and consequently also the price of borrowing for both the state and private en tities. Slovenia has opted to rehabilitate its banking sector by means of a bad bank (DUTB ) that, however, only became operational at the end of 2013. The paper seeks to examine whether a bad bank has indeed proven the most appropriate choice out of possib le methods of resolving the banking crisis, based on the most recent findings regarding the suitability of various methods of bailing out banking systems in crisis, taking into consideration key elements required for the successful rehabilitation thereof. The paper finds that, taking into consideration all relevant circumstances, the bad bank has proven to be appropriate solution in the Slovenian case but the delay in rehabilitating the banking system has had significant negative macroeconomic impacts as de monstrated by a comparison to other selected countries that had opted to bail out the banking sector before Slovenia. State ownership of systemic banks and political instability have both greatly contributed to slow action taken.

Keywords

državna pomoč;dokapitalizacija;banke;bančništvo;slaba banka;makroekonomija;

Data

Language:	English
Year of publishing:	2015
Typology:	1.01 - Original Scientific Article
Organization:	UM EPF - Faculty of Economics and Business
UDC:	336.71(497.4)
COBISS:	11952924
ISSN:	1844-7007
Views:	866
Downloads:	118
Average score:	0 (0 votes)
Metadata:

Other data

Secondary language:	Slovenian
Secondary keywords:	državna pomoč;dokapitalizacija;banke;bančništvo;slaba banka;DUTB;makroekonomija;
URN:	URN:SI:UM:
Type (COBISS):	Scientific work
Pages:	str. 128-141
Volume:	ǂVol. ǂ1
Issue:	ǂno. ǂ1
Chronology:	2015
ID:	10847235