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Croatia’s Banking Regulation: A Guide to Compliance

In Croatia, the Croatian National Bank (CNB) is the primary regulator of the banking sector. Its main objective is to maintain financial stability while supporting national economic policy and promoting free market competition.

Market Overview

The Croatian banking sector is relatively small, with 19 commercial banks operating on the market. Foreign-owned banks dominate the sector, holding 90.2% of total bank assets. Italian- and Austrian-owned banks have a significant share in the market, with over 80% of total assets belonging to the top five banks.

Corporate Governance

Banks in Croatia are established as joint stock companies, which means that provisions of the Companies Act apply. The Credit Institutions Act and other regulations issued by the CNB define corporate governance rules for banks. Most Croatian banks are part of larger international groups, which have their own internal corporate governance codes.

Key Regulations

• The Corporate Governance Code issued by HANFA and the Zagreb Stock Exchange.
• The Audit Act and Accounting Act.

Conclusion

In conclusion, Croatia’s banking regulation is designed to ensure financial stability, promote free market competition, and protect investors’ interests. Banks operating in Croatia must comply with a range of regulations, including those related to corporate governance. Understanding these requirements is essential for banks seeking to operate successfully in the Croatian market.

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