The powers of the Croatian National Bank as the resolution authority are prescribed in the Act on the Resolution of Credit Institutions and Investment Firms under which the Croatian National Bank, among others, has the following resolution powers:
- carries out an assessment of feasibility and credibility of resolution or bankruptcy;
- prepares resolution plans;
- determines and orders removal of impediments to bankruptcy or resolvability;
- determines the minimum requirement for own funds and eligible liabilities; and
- cooperates and coordinates the resolution authorities of the Republic of Croatia with the relevant authorities of other Member States.
Bankruptcy proceedings or resolution are deemed to be possible if bankruptcy proceedings are feasible and credible or if resolution is feasible and credible where, in order to avoid adverse effects on the financial system of the Republic of Croatia, other member States of the European Union as a whole, it would be carried out by the State Agency for Deposit Insurance and Bank Resolution by applying the resolution tools and powers under the Act on the Resolution of Credit Institutions and Investment Firms and without assuming any of the following:
- any extraordinary public financial support besides the use of funds from the resolution fund referred to in Article 114 of this Act;
- any central bank emergency liquidity assistance; or
- any central bank liquidity assistance provided under non-standard collateralisation, tenor and interest rate terms.