"The banking sector is in the mature phase of its cycle and is recording record profitability with the lowest level of bad loans, but good times do not last forever, and financial resilience must be built in good times. Cyclical risks have been accumulating for a long time, while capital surpluses are decreasing under the influence of faster asset growth and profit distributions. The Croatian National Bank pursues a proactive macroprudential policy, that is, a policy which reduces financial risks and maintains stability, but the banking sector itself must also strengthen its resilience while it can. Specifically, although the banking sector is stable and resilient even under hypothetical very unfavourable scenarios, the weaker capital position of banks in a stressful period may reduce the propensity to lend to the economy and thus strengthen the possible negative economic cycle", said CNB Governor Boris Vujčić at the 29th professional conference "Financial Market", which was held on 7 and 8 May in Opatija and attended by experts from the financial sector, business community and academia.

According to the Governor, the Croatian National Bank is taking a series of measures aimed at limiting financial risks, so macroprudential policy measures include strengthening capital buffers and stricter lending rules, particularly in the segment of housing and consumer loans. The implementation of these measures is already yielding results by reducing risky loans with elevated debt indicators, but risks still remain and require continuous attention. "The indicators of cyclical risks clearly signal that vulnerabilities in the financial system are gradually accumulating and for this reason we must start working now to ensure that our banking sector is able to lend to the economy when tougher economic times come", emphasised the CNB Governor.