Although the International Monetary Fund in 2001 conducted a Financial System Stability Assessment (FSSA) of Slovenia's two major payment systems, the real time gross settlement (RTGS) system and the GIRO Clearing system, the Bank of Slovenia (Banka Slovenije, or BoS) in a 2003 Annual Report stated that as per a resolution adopted by the Governing Board of the BoS only the RTGS system is defined as a systemically important payment system (SIPS). Furthermore according to a 2006 Annual Report by the BoS, as of January 1, 2007, the RTGS system was discontinued owing to Slovenia's link up with TARGET 2 (the European Union payment system) and was replaced by the German RTGS system, RTGSplus. In its 2001 FSSA report, the IMF stated that Slovenia was fully/largely compliant with Principles 2, 4, 6, 8, 9 and 10. The 2003 Annual Report by the BoS notes that the RTGS system, the GIRO Clearing system and all other payment systems will have to comply with the Bank for International Settlement (BIS) Core Principles for Systemically Important Payment System (CPSIPS). However after the 2001 IMF FSSA there is little information as to Slovenia's compliance with the CPSIPS.

General Overview

According to information provided on the Bank of Slovenia (Banka Slovenije, or BoS) website the Slovenian payments systems consists primarily of the real time gross settlement system (for large value payments) and the Giro Clearing system (for low value payments). However according to a 2007 report by HSBC, as of January 2007, the Slovenian real time gross settlement (RTGS) system was discontinued and interbank payments were linked to the German RTGS system, RTGSplus. The 2006 annual report by the Bank of Slovenia (Banka Slovenije, or BoS) also indicated the same and stated that the transition was taking place in anticipation of Slovenia's link up with TARGET (the European Union RTGS system).

In its 2003 Annual Report (published in 2004), the BoS states that as per a resolution adopted by the Governing Board of the BoS in May 2003 only the RTGS system is recognized as a systemically important payment system (SIPS). The report also notes that as a SIPS, the RTGS system will have to comply with the Bank for International Settlements (BIS) Core Principles for Systemically Important Payment System (CPSIPS) and furthermore the Giro Clearing system and all other payment systems are to comply with the CPSIPS as well.

In 2001 the International Monetary Fund (IMF) published a Financial System Stability Assessment (FSSA) report on Slovenia's payment systems and assessed the RTGS and Giro Clearing systems. In its report the IMF does not give an overall compliance level, however it does state that Slovenia was fully/largely compliant with Principles 2, 4, 6, 8, 9 and 10 (p. 46). However, since the Giro Clearing system is not considered a SIPS by the BoS and the RTGS operated by the BoS has been replaced by the German RTGSplus, the IMF assessment has become dated as to Slovenia's compliance with the CPSIPS.

In its 2006 Annual Report (published in 2007), the BoS notes that the Bank of Slovenia Act and the Payment Transactions Act defines the BoS as the responsible agency for the oversight of the payment system. Article 6 of the Payment Transaction Act (2006) defines the governing of payment systems in Slovenia and the responsibilities of the BoS with regards to payment systems (BoS website). According to the 2006 Annual Report (published in 2007) by the BoS, in 2006, the BoS operated the RTGS and Giro Clearing system and 1,567,213 transactions were settled through the RTGS system with a total value of Slovenian Tolar (SIT) 76,108 billion, and the Giro Clearing system processed 2,108,939 transactions with a total value of SIT 5,493.42 billion. The report also states that "the BoS and the Slovenian banks will join the new TARGET2 system at the time of its establishment, i.e., on 19 November 2007" (p. 86). In the interim the RTGSplus will process large-value and interbank payments in the country (HSBC 2006).

The Principles

I. The system should have a well-founded legal basis under all relevant jurisdictions.

II

According to information provided on the Bank of Slovenia's website, the standards for conducting interbank payments are prescribed in the Payment Transactions Act (2006), which specifies a unified method for implementing payment transactions. To ensure legality and regularity in payments the BoS may prescribe standards for conducting payments, which is based on Article 7 of the Payments Transactions Act. However, there is little information as to Slovenia's compliance with this Principle.

II. The system's rules and procedures should enable participants to have a clear understanding of the system’s impact on each of the financial risks they incur through participation in it.

II

There is insufficient information as to Slovenia's compliance with this Principle since the transition from RTGS to RTGSplus. According to a 2001 IMF Financial System Stability Assessment (FSSA) report that assessed the RTGS and Giro Clearing systems, Slovenia was fully/largely compliant with this principle (IMF 2001). Subsequent to the IMF's 2001 report several changes have taken place in Slovenia and according to information provided in the BoS 2006 annual report (published in 2007) and a 2007 HSBC report, the RTGS system in Slovenia has been discontinued starting January 1st 2007 and replaced by the German RTGS system, RTGSplus.

III. The system should have clearly defined procedures for the management of credit risks and liquidity risks, which specify the respective responsibilities of the system operator and the participants and which provide appropriate incentives to manage and contain those risks.

II

According to information provided on the Bank of Slovenia's website, the standards for conducting interbank payments are prescribed in the Payment Transactions Act (2006), which specifies a unified method for implementing payment transactions. To ensure legality and regularity in payments the BoS may prescribe standards for conducting payments, which is based on Article 7 of the Payments Transactions Act. In its 2001 FSSA the IMF indicated that the problems with managing problems for banks in respect to managing credit and liquidity risks would be over when the payment system reforms were completed. However, subsequent to the IMF 2001 report there is little information as to Slovenia's compliance with this Principle.

IV. The system should provide prompt final settlement on the day of value, preferably during the day and at a minimum at the end of the day. (Systems should seek to exceed the minima included in this Core Principle.)

II

There is insufficient information as to Slovenia's compliance with this Principle since the transition from RTGS to RTGSplus. According to a 2001 IMF Financial System Stability Assessment (FSSA) report that assessed the RTGS and Giro Clearing systems, Slovenia was fully/largely compliant with this principle (IMF 2001). Subsequent to the IMF's 2001 report several changes have taken place in Slovenia and according to information provided in the BoS 2006 annual report (published in 2007) and a 2007 HSBC report, the RTGS system in Slovenia has been discontinued starting January 1st 2007 and replaced by the German RTGS system, RTGSplus.

According to a 2002 European Central Bank (ECB) report, payment transactions are immediately debited from the settlement account of the sending participant (provided that there are sufficient funds available) and credited to the account of the receiving participant (ECB 2002).

V. A system in which multilateral netting takes place should, at a minimum, be capable of ensuring the timely completion of daily settlements in the event of an inability to settle by the participant with the largest single settlement obligation. (Systems should seek to exceed the minima included in this Core Principle.)

II

There is insufficient information as to Slovenia's compliance with this Principle.

VI. Assets used for settlement should preferably be a claim on the central bank; where other assets are used, they should carry little or no credit risk and little or no liquidity risk.

II

There is insufficient information as to Slovenia's compliance with this Principle since the transition from RTGS to RTGSplus. According to a 2001 IMF Financial System Stability Assessment (FSSA) report that assessed the RTGS and Giro Clearing systems, Slovenia was fully/largely compliant with this principle (IMF 2001). Subsequent to the IMF's 2001 report several changes have taken place in Slovenia and according to information provided in the BoS 2006 annual report (published in 2007) and a 2007 HSBC report, the RTGS system in Slovenia has been discontinued starting January 1st 2007 and replaced by the German RTGS system, RTGSplus.

VII. The system should ensure a high degree of security and operational reliability and should have contingency arrangements for timely completion of daily processing.

II

There is insufficient information as to Slovenia's compliance with this Principle. The IMF's 2001 FSSA noted that at the time of the assessment in 2001 the RTGS and Giro Clearing systems were generally secure and contingency measures were in place. Subsequent to the IMF's 2001 report several changes have taken place in Slovenia and according to information provided in the BoS 2006 annual report (published in 2007) and a 2007 HSBC report, the RTGS system in Slovenia has been discontinued starting January 1st 2007 and replaced by the German RTGS system, RTGSplus.

VIII. The system should provide a means of making payments which is practical for its users and efficient for the economy.

II

There is insufficient information as to Slovenia's compliance with this Principle since the transition from RTGS to RTGSplus. According to a 2001 IMF Financial System Stability Assessment (FSSA) report that assessed the RTGS and Giro Clearing systems, Slovenia was fully/largely compliant with this principle (IMF 2001). Subsequent to the IMF's 2001 report several changes have taken place in Slovenia and according to information provided in the BoS 2006 annual report (published in 2007) and a 2007 HSBC report, the RTGS system in Slovenia has been discontinued starting January 1st 2007 and replaced by the German RTGS system, RTGSplus.

IX. The system should have objective and publicly disclosed criteria for participation, which permit fair and open access.

II

There is insufficient information as to Slovenia's compliance with this Principle since the transition from RTGS to RTGSplus. According to a 2001 IMF Financial System Stability Assessment (FSSA) report that assessed the RTGS and Giro Clearing systems, Slovenia was fully/largely compliant with this principle (IMF 2001). Subsequent to the IMF's 2001 report several changes have taken place in Slovenia and according to information provided in the BoS 2006 annual report (published in 2007) and a 2007 HSBC report, the RTGS system in Slovenia has been discontinued starting January 1st 2007 and replaced by the German RTGS system, RTGSplus.

X. The system's governance arrangements should be effective, accountable and transparent.

II

There is insufficient information as to Slovenia's compliance with this Principle since the transition from RTGS to RTGSplus. According to a 2001 IMF Financial System Stability Assessment (FSSA) report that assessed the RTGS and Giro Clearing systems, Slovenia was fully/largely compliant with this principle (IMF 2001). Subsequent to the IMF's 2001 report several changes have taken place in Slovenia and according to information provided in the BoS 2006 annual report (published in 2007) and a 2007 HSBC report, the RTGS system in Slovenia has been discontinued starting January 1st 2007 and replaced by the German RTGS system, RTGSplus.

A. The central bank should define clearly its payment system objectives and should disclose publicly its role and major policies with respect to systemically important payment systems.

II

In its 2006 Annual Report (published in 2007), the BoS notes that Bank of Slovenia Act and the Payment Transactions Act defines the BoS as the responsible agency for the oversight of the payment system. According to the 2006 BoS report "the objective of this oversight is to protect the financial system from possible systemic consequences if one or more payment system participants has financial difficulties, and to ensure the operational safety and efficiency of payment systems" (p. 89). Furthermore, the report also notes that that BoS has based its oversight functions as per CPSIPS requirements and the European System of Central Banks (ESCB) guidelines and an oversight methodology is also in place in accordance with the European Central Bank (ECB) methodology for the TARGET system. In spite of the above information, there is insufficient information as to Slovenia's compliance with this Principle.

B. The central bank should ensure that the systems it operates comply with the Core Principles.

EN

In its 2006 Annual Report (published in 2007), the BoS notes that Bank of Slovenia Act and the Payment Transactions Act defines the BoS as the responsible agency for the oversight of the payment system. Furthermore, the report also notes that that BoS has based its oversight functions as per CPSIPS requirements and the European System of Central Banks (ESCB) guidelines and an oversight methodology is also in place in accordance with the European Central Bank (ECB) methodology for the TARGET system.

In its 2003 Annual Report (published in 2004), the BoS notes that the RTGS system, the Giro Clearing system and all other payment systems are to comply with the BIS Core Principles for Systemically Important Payment System (CPSIPS) and the Governing Board of the BoS adopted in May 2003 a resolution requiring the staff at the BoS to oversee the Slovenian payment systems in accordance with the CPSIPS.

C. The central bank should oversee compliance with the Core Principles by systems it does not operate and it should have the ability to carry out this oversight.

EN

In its 2003 Annual Report (published in 2004), the BoS notes that the RTGS system, the GIRO Clearing system and all other payment systems are to comply with the BIS Core Principles for Systemically Important Payment System (CPSIPS) and the Governing Board of the BoS adopted in May 2003 a resolution requiring the staff at the BoS to oversee the Slovenian payment systems in accordance with the CPSIPS.

D. The central bank, in promoting payment system safety and efficiency through the Core Principles, should cooperate with other central banks and with any other relevant domestic or foreign authorities.

II

According to information provided in an ECB 2002 report the BoS cooperates with several domestic organizations such as the Bank Association of Slovenia, the Securities Market Supervisory and Oversight Authority, the Government Tax Office and the Government Statistics Office. However, there is insufficient information as to Slovenia's compliance with this Principle.