Once close cooperation is established, the CNB will have a position equal to other national competent authorities (NCAs) of Member States participating in the SSM with regard to the adoption of supervisory decisions. NCAs significantly contribute to decision making in the SSM, making draft decisions and proposing their adoption to the ECB, after which the ECB, based on its judgement and the proposal of the NCAs, adopts the final decision.
In that regard, a representative of the CNB will participate, with full voting rights, in the ECB Supervisory Board, which prepares and proposes draft decisions regarding all ECB supervisory tasks to the Governing Council for adoption.
The only difference in the adoption of supervisory decisions in close cooperation is that ECB legal acts (including supervisory decisions addressed to banks) do not have direct effect in Member States in close cooperation. This means that the ECB will not address any supervisory decisions to the banks established in Croatia but will instead send instructions, guidelines or requests to the CNB. Based on these, the CNB will adopt the necessary national supervisory measures with respect to the banks. National law in Croatia obliges the CNB to adopt, mutatis mutandis, any measures requested by the ECB in relation to banks established in Croatia.