Fitch also pointed out that the rehabilitation of Slovenian banks had diminished the vulnerability of the government in the bank sector. The total quotient of Tier 1 capital, core measure of a bank's financial strength, increased by 5.7 percentage points, to 15.9 per cent, between end of 2012 and September 2014; particularly owing to the transfer of bad loans to the Bank Assets Management Company (BAMC), the scope of bad loans has shrunk, too. However, Fitch warns that Slovenia’s bank system is still fragile. On the other hand, Fitch does not expect that the Slovenian budget will need to provide the banks with further financial aid.

A. Č., MMC; translated by K. Z.