The Single Resolution Board (SRB) decides on the resolution of those credit institutions for which it is directly responsible and the Croatian National Bank (CNB), after consulting the SRB, decides on the resolution of other credit institutions.
The decision to open resolution proceedings against a Croatian credit institution under the direct remit of the SRB is adopted at an executive session of the SRB (in which the CNB is also represented), when the European Central Bank determines that:
- the credit institution is failing or likely to fail;
- there are no supervisory or private sector measures that can restore the bank to viability within a reasonable timeframe; and
- resolution is necessary in the public interest, i.e. the resolution objectives would not be met to the same extent if the bank were wound up under normal insolvency proceedings.