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Croatia’s Financial System Highly Susceptible to Spillover Effects from International Environment
The Croatian financial system is vulnerable to potential shocks and structural imbalances, making it highly susceptible to spillover effects from the international environment, according to a recent notification from the Hrvatska narodna banka (HNB).
Vulnerability to Global and Regional Economic Developments
- Croatia’s small open economy with a bank-centred financial system makes it highly exposed to global and regional economic and financial developments.
- This vulnerability is further amplified by moderately elevated structural imbalances in the country.
Systemic Risk Buffer (SyRB) Implementation
To address these risks, the HNB has implemented a Systemic Risk Buffer (SyRB) of 1.5%, which aims to strengthen the resilience of the Croatian banking sector and minimize the risk to financial stability over the long term.
- The SyRB is cumulative with other systemic risk buffers, including the O-SII buffer, which ranges from 0.5% to 2%.
SyRB Rates for Credit Institutions in Croatia
Here is a table showing the sums of the SyRB rate and O-SII buffer rates for each credit institution in Croatia:
| Institution | G-SII/O-SII Buffer Rate | O-SII Consolidation Level | Sum of G-SII/O-SII and SyRB Rates |
|---|---|---|---|
| Zagrebačka banka d.d., Zagreb | 2% | Consolidated and individual level | 3.5% |
| Erste&Steiermärkische Bank d.d., Rijeka | 2% | Consolidated and individual level | 3.5% |
| Privredna banka Zagreb d.d., Zagreb | 2% | Consolidated and individual level | 3.5%* |
| Raiffeisenbank Austria d.d., Zagreb | 1.5% | Consolidated and individual level | 3.0% |
| OTP banka Hrvatska d.d., Zagreb | 1.5% | Consolidated and individual level | 3.0% |
| Hrvatska poštanska banka d.d., Zagreb | 0.5% | Consolidated and individual level | 2% |
| Addiko Bank d.d. | 0.5% | Individual level | 2% |
Contact Information
- For more information, please contact the Financial Stability Department at the HNB.
- A link to the announcement on the continued application of the SyRB rate is available here.
Source: Hrvatska narodna banka (HNB) Notification