Betray Your Bank Before Your Bank Betrays You

March 29 (Bloomberg) -- What’s a Slovenian with severalhundred thousand euros in the bank supposed to do? Spread it outamong at least a few different banks, that’s what. Or move themoney out of the country, while it’s still possible.

Imagine what must be on the minds of any savvy depositorsstill left at Nova Kreditna Banka Maribor d.d., now 79 percent-owned by Slovenia’s government. It was one of only four lendersin October that failed the European Banking Authority’s latestcapital-adequacy test, a ritual best known for how lax itsstandards are. One that flunked was Bank of Cyprus Pcl, whereuninsured depositors face 40 percent losses as part of thecountry’s bailout terms. Another was Cyprus Popular Bank Pcl,also known as Laiki Bank, where uninsured deposits will fare farworse and the bank is being shut.