Business Activities

The Croatian National Bank is divided into areas, offices and two centres functioning as independent organisational units. Individual business processes within the units are organised in such a manner that, when combined, they constitute an efficient single business unit.

Depending on the complexity and diversity of business processes and the number of executors in specific parts of business processes, areas and offices, as CNB's independent organisational units, can be organised in subordinate organisational units: departments and divisions.

Below is a list of key organisational units and their functions with an overview of their most important tasks:

The Economic Analysis and Monetary Policy Area – analyses domestic and international economic and financial developments with the aim of ensuring an analytical foundation for the implementation of monetary policy and providing timely and high-quality information to the public.

Tasks:

preparing an analytical foundation for the needs of the Governor in discussions and decision-making on issues in the area of monetary policy at the Governing Council of the European Central Bank and CNB representatives in the work of other committees and working groups of the European Central Bank;
preparing macroeconomic projections;
preparing research projects;
monitoring and analysing domestic and relevant international economic developments;
analysing monetary developments, the situation of the banking and non-banking sectors and developments in financial markets from the monetary policy perspective;
preparing current CNB's publications and developing ad hoc analyses and comments for the needs of the CNB management;
preparing and holding discussions with representatives of domestic and foreign delegations (European Central Bank, European Commission and other EU institutions, International Monetary Fund, rating agencies);
developing and participating in drafting of laws and subordinate legislation, warnings and recommendations from relevant fields of work;

The Financial Stability Area – performs the tasks of analysis of systemic risks, implementing macroprudential policy, providing support to the work of the Financial Stability Council, preparing current CNB's publications in the area of financial stability, preparing materials and positions for participation in the work of domestic and international institutions in the area of financial stability (FSC, ECB, ESRB, EBA).

Tasks:

assessing risks for financial stability and effects of their materialisation;
examining the resilience of credit institutions’ system to stress;
designing of macroprudential policy and monitoring the effects of macroprudential measures;
preparing and monitoring macroprudential regulations;
creating contributions in the area of financial stability for regular CNB’s publications;
preparing expert analyses and reports in the area of financial stability for the needs of the CNB management;
participating in the working groups and teams of the ECB’s Financial Stability Board and the Advisory Technical Committee of the ESRB and EBA;
providing expert, technical and administrative support to the Financial Stability Council.

The Statistics Area gathers and processes data from the statistical reporting entities of the Bank, compiles and publishes statistical indicators and reports, prepares the analyses and releases for the purposes of domestic and international users and develops statistical methodologies, provides support in developing information systems and the drafting of regulations relating to the official statistics falling under the competence of the Bank.

Tasks:

compiling and processing of data for the needs of preparing monetary, financial and balance of payments statistical indicators for the purpose of their publishing and submission to European and other international statistical bodies and organisations;
compiling and processing of data for the purpose of implementing economic analyses, which serve as a basis for the adoption and monitoring of the implementation of monetary and macroprudential policy measures;
compiling and processing of referential data on legal entities in the RC and on legal entities outside the RC that are linked to financial institutions in the RC for the purposes of internal use and updating of such data in the central register of the European Central Bank;
developing statistical methodology (with the purpose of compliance with international standards and other legal documents), regulations and the RC and the EU statistical system as a whole in cooperation with the Croatian Bureau of Statistics (CBS), the ESCB and the Eurostat.

The Central Banking Operations Area implements a common monetary policy of the Eurosystem and manages financial assets.

Tasks:

preparing an analytical foundation for the needs of the Governor in discussions and decision-making on issues in the area of the implementation of common monetary policy at the Governing Council of the European Central Bank and CNB representatives in the work of other committees and working groups of the European Central Bank;
operational implementation of the Eurosystem's common monetary policy through standard and non-standard refinancing operations, which includes granting loans to banks, creating the securities portfolio, as well as collecting deposits from banks;
investment of financial assets;
monitoring the exposure to interest rate, currency, credit and other risks related to investments of financial assets.

The Prudential Regulation, Methodology and On-Site Supervision Area performs the tasks of preparing proposals, monitoring and issuing opinions and information on the implementation of prudential regulations and crisis management, supervising advanced approaches and models, carrying out on-site inspections, receiving prudential reports and preparing system analyses, coordinating and preparing materials and positions and supporting decision-making within the EBA.

Tasks:

proposing prudential regulations or participation in working bodies in charge of proposing prudential regulations which transpose, inter alia, the acquis communautaire of the EU into the legal system of the RC;
providing expert support to supervisory teams in the assessment of risks of models used by credit institutions to manage risks, the evaluation of recovery plans and follow-up activities by developing internal methodologies and analysing benchmark trends in order to ensure equal treatment of entities subject to supervision;
regulating advanced risk management approaches and performing stress testing;
supervising the initial and subsequent validation of the proposed or approved advanced approach for calculating capital requirements;
drafting proposals of regulations governing reports for the needs of supervision and oversight, maintaining the prudential reporting system;
preparing horizontal analyses of the banking system;
maintaining the methodology for prudential supervision of credit institutions;
carrying out on-site inspections of credit institutions and credit unions.

The Prudential Supervision Area performs the tasks of exercising supervision of credit institutions and the oversight of credit unions, proposes supervisory measures for credit institutions and credit unions and oversees their implementation and performs the licensing of credit institutions and credit unions.

Tasks:

participating in the work of joint supervisory teams (JSTs) of the ECB and CNB on the supervision of significant credit institutions;
exercising supervision of credit institutions through the supervisory review and evaluation of the sustainability of business models, internal management, capital adequacy and risks that affect capital and liquidity;
preparation of quantitative and qualitative supervisory measures and the monitoring of their implementation;
overseeing the implementation of laws and regulations governing the operation of credit institutions;
exercising oversight of credit unions;
issuing authorisations and approvals related to the operation of credit institutions and credit unions;
evaluation of credit institutions’ recovery plans and crisis management;
overseeing the maintenance of own funds in payment institutions and electronic money institutions.

The Expert Supervision and Oversight Area performs the tasks of the oversight of anti-money laundering and countering of the financing of terrorism in connection with entities subject to the Act on the Prevention of Money Laundering and Terrorist Financing, the implementation of which is overseen by the CNB. It also supervises information systems of credit institutions and oversees information systems of credit unions, electronic money institutions, payment institutions, payment systems, small payment institutions, small electronic money institutions and account information service providers.

Tasks:

drafting proposals of regulations and guidelines, monitoring the regulatory framework and good practice and participating in the drafting of laws governing anti-money laundering and terrorist financing;
overseeing the prevention of money laundering and terrorist financing and implementing international restrictive measures;
providing support to supervisory and oversight teams within the procedure of supervision of credit institutions and oversight of credit unions;
drafting proposals of regulations and guidelines, monitoring the regulatory framework and good practice related to information systems;
exercising supervision of information systems of credit institutions;
overseeing information systems of credit unions, electronic money institutions, payment institutions, payment systems, small payment institutions, small electronic money institutions and account information service providers.

The Payment Operations Area performs tasks regulating and improving payment operations and ensuring their smooth functioning, thus ensuring the safe and efficient functioning of payment operations and payment systems.

Tasks:

regulating payment operations;
performing the tasks of licensing/registration of payment institutions, electronic money institutions, small payment institutions, small electronic money institutions, account information service providers and payment systems;
performing the tasks of oversight of the implementation of regulations in the area of payment operations in relation to payment service providers, electronic money issuers and payment systems;
oversight of the implementation of regulations governing the enforcement against monetary assets in credit institutions and credit unions;
collecting, processing and publishing of payment statistics;
performing operational tasks of payment system management;
performing operational tasks related to domestic and foreign payment operations.

The Currency Area ensures sufficient quantities of currency for the needs of credit institutions and the public in the territory of the Republic of Croatia, manages its logistic reserves and processes and destroys currency. It plans the necessary quantities of euro banknotes and euro coins in cooperation with the European Central Bank and the European Commission. It collects and analyses data on currency, prepares regulatory bylaws related to currency and carries out the control of entities subject to the application of these bylaws. It also performs the task of cash exchange for the public and performs the tasks of the National Counterfeit Centre and the National Analysis and Coin National Analysis Centres. The Area develops and improves business processes and work technology in relation to the operational functioning of currency operations, cooperates with other central banks and participates in the work of the bodies of the European Central Bank and the European Commission in the currency area.

Tasks:

currency issuing;
controlling or participating in the control of cash production;
performing currency-related operational tasks (participation in the procurement, storage, processing, replacement, withdrawal and destruction of currency);
regulating and managing currency supply;
managing logistic currency reserves;
defining the features of commemorative, circulation and numismatic euro coins issued by the CNB (nominal amount, design, technical features);
analysing suspect currency;
taking and implementing measures for the prevention of counterfeiting and detection of counterfeit banknotes and coins;
preparing the proposal for the plan of production of revenue stamps and bill of exchange forms;
distribution of revenue stamps and bill of exchange forms of the Republic of Croatia and keeping a record on the stock and sale;
participation in the destruction of materials for printing banknotes, minting coins and printing revenue stamps and bill of exchange forms;
governing regulations in the area of currency operations;
collecting and processing currency statistics;
controlling compliance by banks and other entities that are subject to the application of regulations governing currency operations; and
participation in the work of the bodies of the European Central Bank and the European Commission in relation to currency.

The International and European Relations Area is responsible for the tasks of European and international relations, in particular of relations with international financial institutions. The Area performs the tasks related to the activities and policies of European Union (EU) institutions and the relevant government administration bodies, including the Permanent Representation of the Republic of Croatia to the EU in Brussels, as well as tasks related to the activities and policies of international financial institutions, including within the Office of the Executive Director for the Dutch-Belgian Constituency with the International Monetary Fund (IMF) and the coordination of technical cooperation activities.

Tasks:

preparing materials and positions – independently of and in cooperation with the competent expert services of the CNB – for the meetings of structures within the European Central Bank, including the European System of Central Banks (ESCB) and the Eurosystem, the European Systemic Risk Board and the EU Council attended by the members of the CNB's management;
participation in other relevant activities arising from the membership of the RC in the EU and the CNB in the ESCB;
preparing internal information and reporting on EU activities and policies of interest for the CNB (in particular, publications, initiatives and proposals of the European Commission);
preparing materials and positions on the policies of international financial institutions (primarily the IMF and the Bank for International Settlements) for the purposes of the participation of the RC and/or the CNB in the work of these institutions and compiling the materials on the relations of the RC and the CNB with the above institutions;
carrying out financial and legal activities arising from the membership of the RC/the CNB in international financial institutions in line with the adopted regulations;
organising visits of the IMF missions and other international financial institutions, as well as preparing the participation of the CNB delegation in the work of the management bodies of international financial institutions;
coordinating activities at the CNB level in relation to the negotiations on the accession of the RC to the Organisation for Economic Cooperation and Development (OECD), as well as participation in the work and analysing and preparing the materials and positions for the purpose of participation in the work of certain OECD committees and working groups.

The Controlling, Finance and Accounting Area implements a management-oriented controlling concept, which includes strategic and operational controlling, performs the accounting tasks of compiling, control and processing of data on funds, sources of financing, revenues and expenditures of the Croatian National Bank, prepares the financial statements in line with legal regulations in order to provide support to business decision-making and management and to other end users.

Tasks:

managing the process of operational and strategic planning and the process of reporting on the implementation of the plans;
providing timely analysis, information, advice and guidelines for the implementation of plans and achievement of objectives;
analysing and compiling information pertaining to costs with a view to achieve efficient cost management;
processing data based on reliable and accurate accounting documents on transactions and keeping business records (journal, general ledger, subsidiary ledgers);
compiling and submitting the daily balance sheet to the European Central Bank in accordance with the set guidelines of the European Central Bank;
preparing and compiling annual financial statements subject to audit (balance sheet, profit and loss account, notes to the financial statements), compiling financial statements for statistical, tax and other purposes; compiling internal information based on the analyses of accounting data;
cooperation with ESCB bodies.

The Information Technology Area develops and maintains the information system, cooperates with organisational units in preparing user requests and the analysis of the business needs of business functions, performs the tasks of designing and programming of applications with the application of ISO quality standards, manages the network and operating systems, provides timely user support, ensures the protection and safety of the information system and manages databases, reporting systems and documents, cooperates with institutions in the RC and the EU with regard to the development and improvement of the Croatian National Bank's IS.

Tasks:

developing, designing, implementing and maintaining application software;
monitoring and applying system analysis and programming methods;
monitoring the development, selecting and maintaining of software;
defining the methodology and exchanging of data between the Bank and other participants in the banking and financial system;
implementation and administration of operational systems and databases;
developing and maintaining a communication network for data transfer;
monitoring, evaluating and applying measures for the improvement of information system safety;
maintaining the IT equipment.

The Support Services Area is responsible for human resources management, technical and general services, procurement and business protocol.

The Human Resources Department:

planning and implementing the recruitment process;
coordinating employee education and managing career development and employee performance;
drafting internal bylaws related to employment;
performing other tasks related to employment.

The Technical Services Department:

managing technical projects, coordinating, monitoring and supervising the investment construction of buildings or restoration of the Bank's business premises;
maintaining business premises and infrastructure (facilities, installations, devices and equipment);
implementing measures aimed at the protection of environment and nature, managing waste and performing cleaning tasks;
procuring necessary goods and services.

The General Services Department:

providing the services of receiving, filing, delivering and dispatching mail and documents, coordinating the work of the telephone exchange and tasks related to the transport of Bank's employees;
providing restaurant services for employees and the Bank's protocol;
organising the use of spatial resources and the maintenance of the Bank's interior;
procuring necessary goods and services.

The Procurement Department:

coordinating procurement tasks in the Bank;
participating in the entire procurement process and drawing up agreements regarding procurement;
providing expert opinions and recommendations;
representing the Bank before competent bodies in procurement processes;
drawing up the Bank's Procurement Plan.

The Business Protocol Department:

organising protocol and other business events;
managing representational funds;
organising business trips.

The Communications Area performs the tasks of external, internal and digital communication, the tasks of preparing, editing and publishing of publications, proofreading and translation and information and documentation tasks.

The External, Internal and Digital Communications Department:

organisation of the work with the media (conferences, meetings, seminars, workshops, public appearances of employees and officials);
providing answers to queries regarding the CNB's activities raised by the media, the public, companies and institutions;
providing information and explanations, warnings to the public, press releases and comments (through paper and electronic media, the web, social networks, videos, animations, mobile applications, etc.);
public opinion polling;
developing, proposing and using adequate up-to-date communication formats to explain the mandate, tasks and roles of the CNB and economic and financial terms and topics to different audiences;
photographing, video filming and editing;
maintaining the Bank's intranet and Internet pages, programming, designing, implementing and administering the Bank's intranet and Internet pages;
creating and managing the Bank's social network content;
designing and producing special promotional multimedia content.

The Publications Department:

developing and editing regular publications and proposing new formats;
technical editing of publications and graphic layout preparation of the material for the website and the press;
graphic layout preparation and desktop publishing of Bank materials issued in printed and/or electronic form;
developing and promoting CNB publication activities;
monitoring publication citations and downloads.

The Language and Documentation Department:

defining and implementing linguistic standards of the CNB;
proofreading and language editing;
providing linguistic opinions on terminology and general linguistic matters;
written translations from Croatian into English and vice versa (laws and other regulations, Bank's internal bylaws, publications, other documents, etc.);
consecutive interpreting;
planning, developing and promoting the library fund;
managing the library and reading room;
managing CNB archives and records.

The Legal Area provides legal assistance to the Bank's management and other organisational units.

Some of the Area's tasks include:

monitoring, studying and proposing laws and other regulations relating to the activity of the CNB and other banks;
providing legal opinion and advice to other organisational units;
controlling the consistent application of legal and other regulations;
drafting and certifying contracts and other documents related to the Bank's business operations;
representing the Bank in proceedings before courts and other government bodies;
taking and initiating appropriate legal actions at the request of individual organisational units of the Bank.

The Market Conduct Supervision and Consumer Protection Monitoring Area – performs the tasks of supervision of market conduct of service providers within its competence, prepares the regulations and guidelines regarding consumer protection, organises and implements activities aimed at financial literacy of citizens and performs the tasks of licensing in accordance with regulations governing consumer credit.

Tasks:

overseeing the implementation of laws in the area of consumer protection under the CNB's competence to conduct oversight of the implementation of the laws, subordinate legislation and regulations adopted pursuant to such laws, as well as business policy bylaws of entities subject to supervision, which govern the operations with consumers;
continued monitoring of the market of financial products and services intended for consumers;
handling consumer complaints and the verification of the legality of operations of service providers within the competence of the Area related to consumer complaints;
promoting (encouraging) the development of standards and good practice in the provision of financial services, monitoring the application and taking actions to increase the transparency in the work of service providers within the competence of the Area;
monitoring and preparing regulations, guidelines and publications related to consumer protection;
implementing activities aimed at financial literacy;
licensing tasks in accordance with regulations governing consumer credit.

The Credit Institutions Resolution Area performs the tasks related to planning and executing resolution authorities and the regulations and development of the resolution framework, with the aim of safeguarding financial stability and efficient management in crisis situations in the financial system.

Some of the Area's tasks include:

drawing up and updating of resolution plans;
preparing the documentation and coordinating the procedure for the adoption of resolution plans for all credit institutions in cooperation with the Single Resolution Board;
participating in the work of internal resolution teams established by the Single Resolution Board for the performance of all tasks related to resolution planning for credit institutions under the direct responsibility of the Single Resolution Board;
preparing the documentation, taking all actions and coordination related to the execution of resolution authorities and the adoption of the decision on the proposal to open a compulsory liquidation proceeding;
preparing the documentation and coordination regarding the determining, imposing and monitoring of the minimum requirement for own funds and eligible liabilities;
monitoring, proposing and analysing regulations in the area of resolution and normal insolvency proceedings of credit institutions;
work on the operationalisation of resolution authorities by the development of policies, methodologies and procedures;
organising and participating in the testing of the resolution framework, policies and methodologies;
off-site and on-site resolution inspection and preparing the documentation and coordination regarding the imposing of resolution measures.

The Office of the Governor provides support to the Bank's decision-making bodies.