LJUBLJANA, Feb 14 (Reuters) - Slovenia’s central bank governor said on Wednesday that household deposits in local banks were at a record high and that this showed confidence in the Slovenian banking sector five years after it narrowly avoided an international bailout.
“Today households hold over 17 billion euros ($21.03 billion) of their own money in Slovenian banks which is a record value and a reflection of confidence,” Governor Bostjan Jazbec told a conference on the EU Banking Union.
Household deposits reached 17.4 billion euros in November, the latest data available, and were 5.9 percent higher than a year ago, the central bank data showed.
Jazbec, who also sits on the ECB governing board, urged the European Banking Union to form a European system for deposit guarantees, saying this would help boost confidence in banks.
In 2013 the Slovenian government had to pour more than 3 billion euros into local banks to prevent a collapse. At the time about 20 percent of all loans were bad loans. Since then banks managed to reduce this to 6 percent.
The government controls about 44 percent of the banking sector while most of the remaining banks are owned by foreign banks and investors, including French bank Societe Generale , Italy’s Unicredit and Russia’s Sberbank . ($1 = 0.8083 euros) (Reporting by Marja Novak; Editing by Raissa Kasolowsky)