The Central Bank of Slovenia published a review of the effectiveness of its binding macroprudential measures for household lending introduced in 2019, concluding that credit has expanded in recent years while borrower risk indicators have remained broadly sustainable and non-performing exposures have stayed low. The review also reports no major infringements of compliance with the measures. Household loan balances have risen since the measures were introduced, with consumer loan volumes increasing again from 2023 after a marked decline between 2020 and 2022. By end-April 2025, consumer loans were EUR 0.5 billion higher than at end-2019 and housing loans were EUR 2.2 billion higher, with credit dynamics influenced alongside the measures by uncertainty, inflation and interest rate trends. Over the last two years, consumers spent an average of 27.7% of income on consumer loan repayments and 34% on housing loan repayments, while deviations from debt-service-to-income ratio limits and the consumer loan maximum maturity limit of 84 months remained within permitted exemption shares, with higher non-performing loan shares among deviations. Average loan-to-value ratios rose in 2024 to around 67% for primary residences and 58% for secondary properties in the final quarter, and deviations from recommended LTV levels increased towards end-2024, mainly for secondary properties. The central bank also noted some banks offering products that allow borrowing outside the conditions of the measures, with small but rising volumes over the last two years. A re-evaluation is planned for the end of the year to assess whether the minimum consumer creditworthiness level remains appropriate and to adjust it if the Ministry of Labour, Family, Social Affairs and Equal Opportunities changes its calculation of minimum living costs.
Central Bank of Slovenia 2025-07-02
Central Bank of Slovenia review finds 2019 binding consumer lending limits broadly complied with as household credit grows and non-performing exposures stay low
The Central Bank of Slovenia reviewed its 2019 macroprudential measures for household lending, noting credit expansion with sustainable borrower risk indicators and low non-performing exposures. By April 2025, consumer and housing loans increased significantly due to economic factors, while compliance with debt-service-to-income and loan maturity limits remained within exemptions. Some banks offered products outside the measures, prompting a planned re-evaluation to assess consumer creditworthiness criteria.