Keywords

banks, market competition, consolidation

In April and May 2007, a research team of the Croatian National Bank conducted the fifth comprehensive survey of banks operating in the Republic of Croatia to gather the bankers' estimates and views of the current situation and trends in Croatian banking and its environment. In 2005 and 2006 banks were equally dedicated to household and corporate financing and, in a setting of ongoing strong market competition, limits on foreign borrowing and credit growth, made considerable efforts to maintain their profitability at high levels. The survey results suggest that a renewed focus on the household sector and a further expansion of chargeable products and services offered are to be expected in 2008 and 2009. The consolidation of the banking industry is also expected to continue, albeit at a somewhat slower pace than in the last few years.