ABSTRACT
The geographic position of Slovenia is on the border of Western Europe. These geographic and institutional facts make the study of the Slovene national experience with West-European capital somewhat complicated. This chapter presents the subjects of West-European capital and the Slovene banking sector both capital connections in the country and in affiliates outside the geographic area of Slovenia, and also business relations. After the First World War the nostrification process affected foreign banking capital, but the domestic banking sector experienced its 'Grun Zeit'. The new Constitutional Law adopted in July 1994 established the Nova Ljubljanska banka (NLB), to which all assets and liabilities were transferred except those related to countries of the former Yugoslavia, which remained in the LB and thus became subject to inheritance negotiations. The NLB established its own subsidiaries in factoring, real-estate business, trading, consulting, and investment funds.
