What is NRR

Published: 29/5/2020 Modified: 29/11/2021

The NRR is an implicit interest rate computed and published by the Croatian National Bank (CNB) on its website pursuant to Article 306, paragraph (3) of the Credit Institutions Act (Official Gazette 159/2013, 19/2015, 102/2015, 15/2018, 70/2019, 47/2020 and 146/2020), serving as an index to determine the variable part of the variable interest rate on consumer credit, in accordance with Article 11a, paragraph (2) of the Consumer Credit Act (Official Gazette 75/2009, 112/2012, 143/2013, 147/2013, 9/2015, 78/2015, 102/2015 and 52/2016) and Article 24, paragraph (2) of the Act on Consumer Housing Loans (Official Gazette 101/2017).

The NRR is a rate representing the average funding expenses of the Croatian banking sector (banks, savings banks and branches of foreign banks), in relation to the period under review (3, 6 or 12 months), the type of funding (deposits of natural persons, deposits of legal persons from the non-financial sector and all other bank funding), the relevant currency (HRK, EUR, USD, CHF) and the scope of funds (1 – for funds of natural persons, 2 – for funds of natural persons and legal persons from the non-financial sector, and 3 – for all funds received from all natural and legal persons).

The name of each NRR clearly indicates the scope of funds (1, 2 or 3), the duration of the period to which the original data based on which the NRR is computed refer (3M, 6M or 12M) and the currency of funds (HRK, EUR, USD, CHF) — a total of 24 indices (NRR1 and NRR2 are not computed for CHF and USD). Kuna funds indexed to foreign currency are included in the currency to which they are indexed (instead of in kuna funds). For instance, the six-month NRR, computed on the basis of data on the deposits of natural persons in euro and those in kuna indexed to euro (NRR1), is indicated as "6M NRR1 EUR".

By the reporting date of 31 December 2019, the NRR was computed and published by the Croatian Banking Association based on statistical data published by the CNB in the table SP5 Costs of banks’ funding. As of the reporting date of 31 March 2020, data on the NRR have been computed by the CNB and published on its website in the file National reference rate (NRR).