The role of state-owned banks in the 2008 Slovenian banking crisis

Vilma Hanžel Kratochwill

International Journal of Diplomacy and Economy, 2026, vol. 12, issue 3, 275-288

Abstract: The financial crisis of 2007/2008 severely impacted banks in many countries and governments imposed various measures to stabilise the banking sector, including bank recapitalisation by the state and bank nationalisation. This instigated a review of the role of state-owned banks on the local banking market and whether they can be the factor of stability. In Slovenia before 2008 state owned banks dominated the banking market. They significantly contributed to the emergence and cost of the crisis, as their corporate governance was poor, they assumed the highest risks and sustained the largest losses as well as the highest share of non-performing loans in 2013. Findings that state ownership in banks is not desirable are consistent with the experience in Germany and Spain in the same period where state-owned banks were also at the centre of the crisis, as well as literature on state ownership of banks.

Keywords: Slovenian banking crisis 2008; state-owned banks; corporate governance; non-performing loans; cost of the crisis; financial stability; capital adequacy; liquidity. (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijdipe:v:12:y:2026:i:3:p:275-288

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