All banks, not just banks in Slovenia, are under a lot of stress. They are squeezed between fintech and increasingly strict regulatory demands. All these processes are forcing banks to secure economies of scale.

There are currently 16 credit institutions in Slovenia, ranging from large universal banks to regional players and savings banks.

Bankers are unanimous that there are too many banks and that something has to happen, but things tend not to happen until problems start.

To conduct business normally, it is necessary to have at least a 10% market share, which means that smaller institutions will have to merge or sell themselves to major players.

"I estimate that there is space in Slovenia for five banks at most, plus perhaps a boutique institution. Preferably, these banks should have foreign owners from the ranks of international banking groups," the commentator concludes in Slovenia Needs Five Banks at Most.