Abstract

Like all the member states of the European Union, Slovenia was also obligated to implement EU Directives 2006/48/EC and 2006/49/EC into national banking legislative. Basel II rules were implemented into Slovenian legislative in December 2006 and have been valid from 1st of January 2007. Before that, there have been some activities in order to perceive the consequences of Basel II on Slovenian banking sector and an attempt of the regulator to discuss possible changes in the regulation of Slovenian banks. The paper exploits the implications and consequences of Basel II for Slovenian banking sector. In order to gain an insight into Slovenian banks a survey was conducted just three months before the implementation of Basel II.