With the establishment of close cooperation between the European Central Bank and the Croatian National Bank, from the beginning of October 2020, the Republic of Croatia became a fully-fledged member of the Single Resolution Mechanism and CNB representatives started to participate in the plenary and executive sessions of the Single Resolution Board.

For the purpose of strengthening the cooperation between the two authorities, the Single Resolution Board and the Croatian National Bank as the resolution authority for credit institutions held a virtual meeting on Tuesday, 9 February. The meeting was attended by the whole management of the Single Resolution Board led by Chair Elke König, an on behalf of the CNB management, participants included Governor Boris Vujčić and Vicegovernor Roman Šubić, who is also in charge of managing the tasks of resolution of credit institutions.

The main topic of the meeting was the exchange of the latest information on the banking system and on the expectations in the macroeconomic environment. The current resolution issues were also discussed, particularly in the context of the coronavirus crisis. Both sides were pleased to conclude that, despite the current situation, the banking system had remained stable thanks to the high capitalisation and liquidity of credit institutions and the timely response of the competent authorities, in addition to the continued performance of all tasks resulting from the resolution framework. It was also emphasised that Croatia had successfully adjusted its legislative framework that additionally governs resolution issues and adopted the risk reduction measures package at the EU level with the aim of strengthening the resilience of the banking system. Meeting participants concluded that Croatia’s joining the Single Resolution Mechanism would certainly enhance the cooperation with other banking union member states and ensure a more efficient procedure for the implementation of resolution competences.