What does entering into close cooperation with the ECB mean for the supervision of Croatian banks?

What does entering into close cooperation with the ECB mean for the supervision of Croatian banks?

Published: 3/6/2020

The establishment of close cooperation between the ECB and the CNB within the SSM enables the participation of the Croatia in the banking union, where decisions related to supervision are adopted on a consolidated basis for groups of credit institutions operating in the EU, which in turn contributes to the safety and stability of the banking system in Croatia.

Upon establishing close cooperation, the ECB will directly supervise significant credit institutions having their head office in Croatia, while the CNB will still have a significant role in supervision. It will continue to supervise less significant institutions in cooperation with the ECB. Furthermore, the ECB will, in cooperation with the CNB, be responsible for the implementation of common procedures in relation to all credit institutions having their head office in Croatia.

Consistent supervisory policies and the inclusion of the CNB on an equal basis in the adoption of supervisory decisions at EU level will further strengthen banking sector resilience and the trust of bank clients. In addition, the deposit insurance system will continue to function in the same way as before, with bank deposits insured up to the amount of EUR 100,000 in kuna countervalue.