Croatian Deposit Insurance Agency Faces Regulatory Requirements for Financial Institutions

Overview

The Croatian Deposit Insurance Agency was established in 1995, following the passage of the State Agency for Deposit Insurance and Bank Resolution Act on May 25, 1994. As an independent legal entity, its founder is the Republic of Croatia.

Role and Responsibilities

The agency has a vital role to play as it protects depositors - or creditors - at all credit institutions registered in the country, according to the Law on Deposit Insurance System. Specifically:

• Protects depositors’ interests by guaranteeing deposits up to a certain amount
• Provides financial support to credit institutions facing difficulties
• Monitors and supervises the activities of credit institutions

Alignment with EU Directives

The regulations governing the sector have been fully aligned with European Union directives 94/19/EC and 2009/14/EC, which set standards for deposit-guarantee schemes. This ensures that the Croatian Deposit Insurance Agency operates in line with best practices across the European Union.

Financial Stability Council

In 2013, the Financial Stability Council was founded, comprising:

• The Croatian National Bank
• The Croatian Financial Services Supervisory Agency
• The Ministry of Finance

The council’s primary objective is to develop a macro-prudential policy that will help maintain financial stability and contribute to sustainable economic growth by supporting the financial sector.