The publication Financial Stability is the regular annual publication of the Croatian National Bank which builds on the former publication Macroprudential Analysis, but puts more emphasis on future developments in assessing financial stability. It analyses the main risks to banking system stability stemming from the macroeconomic environment of credit institutions and the situation in the main borrowing sectors, as well as the credit institutions' ability to absorb potential losses should these risks materialise. Also discussed are CNB measures to preserve financial system stability. The analysis focuses on the banking sector due to its predominant role in financing the economy.
The purpose of this publication is systematically to inform financial market participants, other institutions and the general public about the vulnerabilities and risks threatening financial system stability in order to facilitate their identification and understanding as well as to prompt all participants to take adequate safeguards should these risks actually occur. It also aims at enhancing the transparency of CNB actions to address the main vulnerabilities and risks and strengthen financial system resilience to potential shocks that could have significant negative impacts on the economy. This publication should encourage and ease a broader professional discussion on financial stability issues. All this together should help maintain confidence in the financial system and thus its stability.
The publication Macroprudential Analysis was published from July 2005 to December 2007. The first issue of the Financial Stability was published in June 2008.