The National Bank of Slovenia acts as the central bank for the Republic of Slovenia. Much like any other central bank, the national bank is charged with ensuring the stability of the currency and the liquidity of payments. Now that Slovenia uses the Euro, the bank shares this duty with many other central banks in Europe.
After Slovenia achieved independence, the new government established its own national bank. Slovenia adopted a new currency in place of the Yugoslav dinar. This new currency was named the tolar. The national bank was entrusted as the bank of issue for this new currency.
Slovenia applied for entrance to the European Union and was eventually granted entrance. In 2007, Slovenia replaced the tolar with the Euro. Now the national bank oversees the stability of this currency in conjunction with the other central banks of countries belonging to the European Union.
As a central bank, the National Bank manages Slovenia’s money supply. One of the goals of all the banks in the Eurozone is to keep the money supply stable and the inflation rate at or around two percent. It also provides oversight for the entire banking system of the country.
While the National Bank of Slovenia works in close cooperation with the government of the Republic, it is not actually a part of the elected government. Like most other central banks, it was designed to be independent and uninfluenced by political factors.
However, the National Bank must make regular reports to the government of the republic about the condition of the currency. It appears before the National Assembly to make its reports. The bank is also governed by certain laws of the country. These laws are known as bank acts. The bank act passed in 1991 has been officially superseded by a later bank act passed in 2006. This latter act reflects changes necessary for operation under the Euro System.