Factor banka said in a press release that all transactions would be carried out normally, including cash withdrawal and the payment of bills.

However, no new deposits would be accepted or new loan contracts signed, which is in line with Friday's announcement by the central bank.

One of the handful of customers that came to the only branch office of Factor banka in Ljubljana said he tried to break up a deposit contract but was told that was impossible before it expired.

The system put in place by the central bank envisages a gradual winding down of the two banks over a period of two to three years, during which time accounts will be transferred to other banks or closed when the contracts expire.

France Arhar, a former central bank governor and the current head of the Bank Association, told the business daily Finance that the decision to opt for an orderly winding down was correct.

In the event of bankruptcy only deposits up to EUR 100,000 are guaranteed, but under this system all deposits have been guaranteed.

"The message is clear: individuals, companies and ordinary creditors have nothing to fear. Your property is safe," he said.

The liquidation will however wipe out the banks' shareholders and holders of junior debt, and eventually lead to the layoff of all employees.

Probanka currently has 238 employees and Factor banka 83.