What is the role of the Croatian national resolution authority for credit institutions in the Single Resolution Mechanism?

Published: 3/6/2020 Modified: 17/5/2022

Under the Act on the Resolution of Credit Institutions and Investment Firms (Official Gazette 146/2020 and 21/2022), the resolution powers in Croatia are divided between the Croatian National Bank (CNB) as the national resolution authority for credit institutions and the Croatian Financial Services Supervisory Agency (HANFA) as the national resolution authority for investment firms.

The Single Resolution Board (SRB) is responsible for the effective and consistent functioning of the Single Resolution Mechanism (SRM). The SRB exercises a part of its powers over credit institutions directly and the other part indirectly, through the CNB as the national resolution authority for credit institutions.

Once Croatia joined the SRM, the SRB became directly responsible for the exercise of resolution powers over a part of credit institutions in Croatia, and a part remained within the responsibility of the CNB.

Since the key task of the SRB is to ensure effective and consistent functioning of the SRM, it is authorised to give instructions, guidance, recommendations and warnings to the CNB to ensure that credit institutions headquartered in Croatia for which it is not directly responsible receive an equal treatment as other credit institutions operating in the EU and that the same rules and high resolution standards apply to them as to the other credit institutions operating in the EU.

The CNB as the national resolution authority for credit institutions in Croatia is also responsible for the effective and consistent functioning of the SRM, i.e. it is obligated to fully cooperate with the SRB, adjust its policies and work methodologies with SRB policies and methodologies and comply with the instructions, guidance, recommendations and warnings issued by the SRB.