Who will be responsible for deciding on the resolution of credit institutions headquartered in Croatia once Croatia joins the SRM?

Published: 3/6/2020

The SRB will decide on the resolution of those credit institutions for which it is directly responsible and the State Agency for Deposit Insurance and Bank Resolution (DAB) will, after consulting the SRB, decide on the resolution of other credit institutions.

The decision to place under resolution a Croatian credit institution under the direct remit of the SRB is adopted by an executive session of the SRB (in which the CNB is also represented), when it is determined that:

  • the credit institution is failing or likely to fail (FOLTF);
  • 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.