At CNB Council session, held on 15 October 2003, a decision was reached to revoke the license of Međimurska štedionica d.d., Čakovec and to initiate compulsory liquidation proceedings in this savings bank. These decisions were reached after the attempts of the Croatian National Bank, over a close to two year period, to improve the conditions in this institution and to bring its operations in line with the Banking Act and subordinate legislation failed.
The assets of Međimurska štedionica d.d. stand at approximately HRK 173m, or 0.09% of total banking system assets. The savings bank has a staff of approximately 20 and operates through its three branches and two sub-branches.
After problems were detected in Međimurska štedionica d.d., the savings bank was placed under close constant supervision of the Croatian National Bank. As recapitalization was found to provide a possible solution and a way of bringing the savings bank's operations in line with the provisions of law, the Croatian National Bank has issued several decisions with measures that the savings bank had to take. At several meetings held in the savings bank, the majority shareholder undertook to sell property and companies owned by the savings banks and use the proceeds to increase the savings bank's equity and settle the obligations of companies in its ownership, or in other way connected to it, towards the savings bank.
However, despite CNB's repeated attempts and realistic possibilities for the savings bank to harmonize its operations with the provisions of the Banking Act and ensure itself a place on the banking market, Međimurska štedionica d.d. and its majority shareholder failed to execute CNB measures within the given deadline and the granted extension of the deadline for their execution. The savings bank failed to harmonize its business operations with the Banking Act and its capital adequacy ratio fell below 3/4 of the minimum prescribed by the same Act.
Given the circumstances, and acting in accordance with Articles 39 and 129 of the Banking Act, the Council of the Croatian National Bank decided to revoke the operating license of Međimurska štedionica d.d. to prevent further losses and preserve assets of the savings bank to be used for the settlement of obligations towards its depositors and other creditors.
Pursuant to the provisions of the Banking Act, the State Agency For Deposit Insurance and Bank Rehabilitation will appoint liquidation trustees to perform the liquidation of assets of Međimurska štedionica d.d. for the settlement of obligations towards creditors in line with the liquidation plan and schedule.