Which credit institutions headquartered in Croatia will the SRB be directly responsible for and what does that imply?

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

Once Croatia joined the Single Resolution Mechanism (SRM) on 1 October 2020, the Single Resolution Board (SRB) became the resolution authority in charge for those banks headquartered in Croatia that are members of groups of credit institutions in the EU that had the SRB as the resolution authority for the group also in the period before Croatia joined the SRM.

The Croatian National Bank (CNB) is responsible for credit institutions that are not members of groups in the EU. The CNB is also directly responsible for those credit institutions that are members of groups in the EU but the parent undertaking of the group they belong to is not located in a banking union Member State.

A direct exercise of resolution powers by the SRB implies that once Croatia joined the SRM, the SRB became responsible for drafting and adopting decisions on the resolvability assessment, resolution plans and the minimum requirement for own funds and eligible liabilities for a part of our largest banks. The CNB representatives and representatives of all other national resolution authorities from other Member States in which the relevant banking group operates take part in the procedures of drafting and adopting of all these decisions, with the aim of ensuring data accuracy, examining the impact of these decisions on the financial stability in Croatia and ensuring the continuity of critical functions.