The financial crises of the late 1990sin East Asia and Eastern Europe, as well as the recentcorporate governance scandals in Europe and America, havehighlighted the need for strong corporate governance inensuring a sound and stable financial sector. The governancepractices of banks are important because banks acceptdeposits from the public, whose funds the government has animplicit (and often an explicit) obligation to protect.Banks are also subject to information asymmetries and highleverage, both of which make banks vulnerable to a suddenrun on deposits where public confidence fails. The Slovenianbank governance review has three objectives to: 1) conduct areview of the Slovenian bank governance framework, 2) makerecommendations on provisions that would help to strengthenthe governance structure of banks in Slovenia, and 3) refinethe good practices developed for the pilot bankinggovernance review program. In addition, the internationalcommunity has encouraged the strengthening of governance inthe banking sector. The Slovenian banking sector hassuccessfully weathered the financial crisis seen in othercountries in 1997-1998, and has improved its stability.However some shortcomings in bank governance remain. Thegovernment remains the dominant owner of banks in Slovenia.
PDF
download
878987797
028-85220240
