Change in ultimate ownership does not put the bank in jeopardy

Published: 14/12/2009

The Croatian National Bank closely monitors developments in Hypo Alpe-Adria-Bank International AG, as the parent bank of Hypo Alpe-Adria-Bank d.d., Zagreb and was today also officially informed by the Austrian National Bank and the Austrian Financial Market Authority about the agreement under which 100 percent of Hypo Alpe-Adria-Bank International AG shares would be taken over by the Republic of Austria.

Hypo Alpe-Adria-Bank d.d., Zagreb is a foreign owned bank which operates in the Republic of Croatia as an independent legal person subject to Croatian legislation. As shown by available indicators, the bank's capital adequacy ratio is very high and stands at over 20 percent which is twice higher than the legally prescribed minimum. There are no business indicators that would suggest the need for any measures to be taken by the CNB against that bank.

The change in the bank's ultimate owner does not change anything in itself, nor does it jeopardise the stability of the banking system in our country, the bank's stability or the safety of its savers and other depositors.

The taking over of the parent Austrian bank Hypo Alpe-Adria-Bank International AG by the Republic of Austria, in our belief, shows the seriousness of the intention to take the measures necessary for bank recapitalisation, stabilisation and successful continuation of the bank's business, which may prove beneficial for its foreign "daughters", Croatian one included. As a result, the Croatian National Bank supports this decision in the same way it is supported by the Austrian institutions mentioned above, as shown in their communication to the CNB.

For any change in ownership of a direct or indirect holding exceeding 10 percent of the bank's capital, an approval has to be obtained from the Croatian National Bank. This rule applies to all the banks operating in Croatia. No request for such an approval related to Hypo Alpe-Adria-Bank d.d., Zagreb has been made so far and when we do receive a request for a change in its ownership structure, it will be dealt with in accordance with the legally prescribed procedure. The public will be informed without delay of any decision in this regard adopted by the CNB Council, in the same way as in any other similar case. Regardless of the fact whether the new owner of this bank is the Austrian state or someone else, Hypo bank in our country will have to continue to operate in accordance with Croatian legislation and subordinate legislation and under the supervision of the Croatian National Bank.