At its session today, the CNB Council was briefed on current economic, monetary and financial developments in the euro area and in Croatia. Council members had a discussion about the financial and banking systems and adopted several decisions within their competence.

Total systemic risk exposure at the end of the second quarter of 2024 remained moderate. The most important risks for financial stability stem from the international environment, relating in particular to geopolitical tensions and the weak growth of the European economy, while systemic risks in the country build up due to strong consumer credit growth. Household general-purpose cash loans accelerate further, driven by increases in income and consumer optimism. Housing loans continue to grow at stable rates, but the growth of real estate prices and the higher interest rate level have increased the loan repayment burden. In contrast, corporate lending has remained muted, with new loans mostly granted to construction, real estate activities and some service sector activities. Due to favourable macroeconomic developments, the already historically low share of non-performing loans has decreased further, which, in addition to the increased interest rate level, has a favourable effect on credit institutions' operations. Residential real estate prices still grow at faster rates than in most EU Member States, although the continuing decrease in the number of purchase transactions signals a further slowdown in the price growth trend. Under such conditions, cyclical risks have remained moderately elevated and the countercyclical buffer rate of 1.5%, applied from mid this year, was assessed as adequate for the mature phase of the financial cycle. The CNB will continue to closely monitor the evolution of consumer lending and related financial risks, adjusting measures aimed at the preservation of financial stability as appropriate.

The CNB Council adopted a decision on the issuance of the 2 euro Marko Marulić commemorative coin to mark the Year of Marko Marulić. Marko Marulić (18 August 1450 - 5 January 1524) was a writer, humanist and erudite, whose works have an exceptional importance for the Croatian literature and cultural heritage.