The capital markets are the most important aspect of the Slovenia financial market as it is related to the development of the same. Over the years the capital markets have played important roles in the development of the Slovenian economy.
The most useful aspect of the capital markets especially in the case of Slovenia financial market is the fact that the depth and liquidity of the capital markets are able to add to the betterment of the national economy by means of lesser financial expenses. It has also been seen that the capital markets are able to improve the standard of distribution of capital besides making better use of the available monetary resources.
Historically, intensifying capital markets have helped to tally the demand and supply of investment. The capital market is also able to afford a “spare tire” for the economic organizations.
In the perspective of the other members of the European Union the equity market of Slovenia is comparatively smaller. The Slovenian bond market is comparatively bigger even though it has not yet attained the standards of the other members of the European Union.
The bond market in Slovenia is predominated by public issuance. The money market in Slovenia is trying to align itself with the MTS trading platform of Europe. The onshore repo market has not started acting in spite of the presence of a master plan since 2004.
There is complete lack of organization in the securities trading sector in Slovenia and no asset-backed securities are traded in Slovenia. In the Slovenian derivative market some exchange-traded funds are listed at present.
Even though the market is not organized some trades are carried out at over-the-counter centers. In the domain of investable securities the number of firms that are listed are on the lower side and the private sector is reliant on finance that is provided by the banks.
Last Updated on : 1st August 2013