Retrospective on Leif Arnesen, “Rehabilitation of the Slovenian Banking System: Seeking Strengths in the Aftermath of a Crisis” from Reinventing Slovenia: Challenges and Opportunities Perspectives on Business and Economics, Volume 32, 2014 Leif Arnesen ‘14 is the co-founder & CEO at The Vegan Gym. Arnesen describes the state of the Slovenian banking sector in 2014, highlighting multiple efforts the country had taken to stabilize and restructure the banking system. He also provides recommendations on restructuring methods. Has the economic health and stability of Slovenia’s economy and banking system improved since 2014? As of 2025, Slovenia has a successful and healthy economy. Fitch Ratings has given the country an “A” rating, which means the country has strong and stable fundamental economic characteristics. Slovenia has proven its resilience to shocks following the Russia-Ukraine conflict as well as the postpandemic recovery. According to an OECD report from 2024, the labor market remains tight. Borrowing costs for households and firms have increased. However, contrary to what was stated in the original article, data shows that Slovenia is now enjoying increased economic growth. The country has outpaced most other European Union member states and has seen rising incomes, growing domestic consumption, and low unemployment. “Slovenia’s economy rebounded after the COVID-19 pandemic with a GDP growth rate of 8.1 percent in 2021 and 5.37 percent in 2022, exceeding the eurozone average” (U.S. Department…, 2024). These macroeconomic factors have allowed banks to experience success and introduce new financial services to serve their customers. Financial inclusion and digitization have also propelled the growth of the banking sector in Slovenia. How has Slovenia restructured their banking sector since 2014? Since this research article was published in 2014, there has been significant restructuring of Slove- nia’s banking sector. Since the financial crisis of 2008, Slovenia has been working to restructure and recapitalize its financial system. The privatization of many large banks in Slovenia was long debated. As of 2021, Slovenia has 11 commercial banks, three savings banks, and two foreign bank branches that serve two million people. “All commercial banks are private as of January 2021, and most have foreign owners and shareholders” (U.S. Department…, 2024). The government also supplied about $4.2 billion into Slovenia’s three largest banks, NLB, NKBM, and Abanka (U.S. Department…, 2024). These actions helped the largest commercial banks become recapitalized. Slovenia's largest bank (NLB) was privatized in 2019. The government remains a major shareholder with a 25% plus one share stake. NKBM was sold to an American fund and the European Bank for Reconstruction and Development in 2016, and in 2020 NKBM acquired another large Slovenian bank, Abanka. Enhanced regulatory measures were also implemented to improve the resilience of the banking sector. This included stricter capital requirements and liquidity standards aligned with EU regulations. As of today, the restructuring of Slovenia's banking system has contributed to a healthy economy. In turn, the Slovenia’s steady economic growth has had a positive impact on the banking market. References Fitch Ratings, (2023, October 20). Fitch Affirms Slovenia at 'A'; Outlook Stable. U.S. Department of State, (2024). 2024 Investment Climate Statements: Slovenia. Retrospective by Randi Conroy ‘25 Finance, with mass communication minor 2 Martindale Retrospectives June 2025
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