Bank of Slovenia adopts EBA guidelines on the definition of default

The Governing Board of Banka Slovenije has issued a decision adopting the updated European Banking Authority guidelines on the definition of default, which will apply to all Slovenian banks, savings banks and credit companies from 19 October 2026. The decision, published in the Official Gazette of the Republic of Slovenia (Uradni list RS, edition 1427/2026, dated 15 September 2026), transposes the EBA guidelines EBA/GL/2026/05 into the national supervisory framework.

The decision is based on the third paragraph of Article 13 of the Banking Act (ZBan-4) and the first paragraph of Article 31 of the Bank of Slovenia Act, and was signed by Primož Dolenc, president of the Governing Board, in Ljubljana on 3 September 2026.

What the new guidelines change

The European Banking Authority (EBA) published the guidelines EBA/GL/2026/05 on its website on 7 May 2026, amending the earlier guidelines EBA/GL/2016/07 on the application of the definition of default under Article 178 of Regulation (EU) No 575/2013. The text was subsequently corrected by a corrigendum published by the EBA on 17 July 2026.

The guidelines are addressed to two categories of addressees:

• financial institutions as defined in point 1 of Article 4(1) of Regulation (EU) No 1093/2010;
• competent authorities as defined in point 2(i) of Article 4(1) of the same regulation.

Scope of application in Slovenia

The decision replaces the earlier Bank of Slovenia decision of 2017 (Uradni list RS, No 75/17, of 22 December 2017), as amended in 2018 (Uradni list RS, No 81/18, of 14 December 2018). It applies the new guidelines, and all future amendments to EBA/GL/2016/07 unless the Bank decides otherwise, to:

• banks, savings banks and credit companies over which Banka Slovenije exercises prudential supervision under ZBan-4 and Council Regulation (EU) No 1024/2013;
• Banka Slovenije itself, when acting as competent authority in exercising its supervisory powers over those institutions.

Banks must fully comply with the provisions of the guidelines addressed to them, while Banka Slovenije must fully observe the provisions relating to the exercise of its tasks and powers as competent authority under ZBan-4 and Regulation (EU) No 575/2013.

Entry into force

The decision enters into force on the fifteenth day after its publication in the Official Gazette of the Republic of Slovenia, and begins to apply on 19 October 2026. The document carries the reference number 031/2026.

Why it matters

The definition of default is a cornerstone of prudential treatment of credit exposures, determining when a loan must be classified as non-performing and how much capital a bank must hold against it. By aligning the Slovenian framework with the updated EBA guidelines, the decision ensures consistent and comparable treatment of defaulted exposures across the single market, directly affecting the capital requirements and risk management of every supervised institution in the country.

Source: Uradni list Republike Slovenije, edition 1427/2026, 15 September 2026, Section I (official reference: 2026-01-2087).