Business Activities

The fundamental organisational structure of the Croatian National Bank (CNB) consists of areas and offices as independent organisational units, within which operational processes are organised in such a manner that they form a single business unit. Depending on the complexity and diversity of business processes and the number of executors in specific parts of business processes, areas and offices, as CNB's independent organisational units, can be organised in subordinate organisational units: departments and divisions. An overview of the most important tasks by organisational units is provided below.

The Research Area analyses domestic and international economic and financial developments and systemic risks with the aim of ensuring an analytical foundation for the implementation of the monetary and macroprudential policy and providing timely and high-quality information to the public.

Some of the Area's tasks include:

preparing an analytical foundation for the needs of the Governor in discussions and decision-making on issues in the area of monetary policy at the Governing Council of the European Central Bank and CNB representatives in the work of other committees and working groups of the European Central Bank and the European Systemic Risk Board (ESRB);
preparing macroeconomic projections;
preparing research projects;
analysing risks to financial stability, stress testing and development and designing of macroprudential policy;
monitoring and analysing domestic and relevant international economic developments;
the analysis of monetary developments and the situation of the banking and non-banking sectors as well as developments in financial markets from the monetary policy perspective;
preparing current CNB's publications and developing ad hoc analyses and comments for the needs of the CNB management;
preparing and holding discussions with representatives of domestic and foreign delegations (European Central Bank, European Commission and other EU institutions, International Monetary Fund, rating agencies);
developing and participating in drafting of laws and subordinate legislation, warnings and recommendations from relevant fields of work;
providing support to the work of the Financial Stability Council.

The Statistics Area gathers and processes data from the statistical reporting entities of the Bank, compiles and publishes statistical indicators and reports, prepares the analyses and releases for the purposes of domestic and international users and develops statistical methodologies, provides support in developing information systems and the drafting of regulations relating to the official statistics falling under the competence of the Bank.

Some of the Area's tasks include:

compiling and processing of data for the needs of preparing monetary, financial and balance of payments statistical indicators for the purpose of their publishing and submission to European and other international statistical bodies and organisations;
compiling and processing of data for the purpose of implementing economic analyses, which serve as a basis for the adoption and monitoring of the implementation of monetary and macroprudential policy measures;
compiling and processing of referential data on legal entities in the RC and on legal entities outside the RC that are linked to financial institutions in the RC for the purposes of internal use and updating of such data in the central register of the European Central Bank;
developing statistical methodology (with the purpose of compliance with international standards and other legal documents), regulations and the RC and the EU statistical system as a whole in cooperation with the Croatian Bureau of Statistics (CBS), the ESCB and the Eurostat.

The Central Banking Operations Area implements a common monetary policy of the Eurosystem and manages financial assets.

Some of the Area's tasks include:

preparing an analytical foundation for the needs of the Governor in discussions and decision-making on issues in the area of the implementation of common monetary policy at the Governing Council of the European Central Bank and CNB representatives in the work of other committees and working groups of the European Central Bank;
operational implementation of the Eurosystem's common monetary policy through standard and non-standard refinancing operations, which includes granting loans to banks, creating the securities portfolio, as well as collecting deposits from banks;
investment of financial assets;
monitoring the exposure to interest rate, currency, credit and other risks related to investments of financial assets.

The Prudential Regulation and Methodology Area performs the tasks of the preparation of proposals, the monitoring and issuance of opinions and information on the implementation of prudential regulations and crisis management, the supervision of advanced approaches and models and the receiving of prudential reports and preparing system analyses.

Some of the Area's tasks include:

proposing prudential regulations or participation in working bodies in charge of proposing prudential regulations which transpose, inter alia, the acquis communautaire of the EU into the legal system of the RC;
providing expert support to supervisory teams in the assessment of risks of models used by credit institutions to manage risks, the evaluation of recovery plans and follow-up activities by developing internal methodologies and analysing benchmark trends in order to ensure equal treatment of entities subject to supervision;
regulating advanced risk management approaches and performing stress testing;
supervising the initial and subsequent validation of the proposed or approved advanced approach for calculating capital requirements;
drafting proposals of regulations governing reports for the needs of supervision and oversight, maintaining the prudential reporting system;
preparing horizontal analyses of the banking system;
maintaining the methodology for prudential supervision of credit institutions.

The Prudential Supervision Area performs the tasks of exercising supervision of credit institutions and the oversight of credit unions, the licensing of credit institutions and credit unions and exercises the oversight of own funds maintenance for payment institutions and electronic money institutions.

Some of the Area's tasks include:

exercising supervision of credit institutions through the supervisory review and evaluation of the sustainability of business models, internal management, capital adequacy and risks that affect capital and liquidity, carrying out on-site inspections and imposing and monitoring the implementation of supervisory measures;
overseeing the implementation of certain laws and regulations governing the operation of credit institutions;
exercising oversight of credit unions;
issuing authorisations and approvals related to the operation of credit institutions and credit unions;
overseeing the maintenance of own funds in payment institutions and electronic money institutions.

The Expert Supervision and Oversight Area performs the tasks of the oversight of anti-money laundering and countering of the financing of terrorism in connection with entities subject to the Act on the Prevention of Money Laundering and Terrorist Financing, the implementation of which is overseen by the CNB. It also supervises information systems of credit institutions and oversees information systems of credit unions, electronic money institutions, payment institutions, payment systems, small payment institutions, small electronic money institutions and account information service providers.

Some of the Area's tasks include:

drafting proposals of regulations and guidelines, monitoring the regulatory framework and good practice and participating in the drafting of laws governing anti-money laundering and terrorist financing;
overseeing the prevention of money laundering and terrorist financing and implementing international restrictive measures;
providing support to supervisory and oversight teams within the procedure of supervision of credit institutions and oversight of credit unions;
drafting proposals of regulations and guidelines, monitoring the regulatory framework and good practice related to information systems;
exercising supervision of information systems of credit institutions;
overseeing information systems of credit unions, electronic money institutions, payment institutions, payment systems, small payment institutions, small electronic money institutions and account information service providers.

The Payment Operations Area performs tasks regulating and improving payment operations and ensuring their smooth functioning, thus ensuring the safe and efficient functioning of payment operations and payment systems.

Some of the Area's tasks include:

regulating payment operations;
performing the tasks of licensing/registration of payment institutions, electronic money institutions, small payment institutions, small electronic money institutions, account information service providers and payment systems;
performing the tasks of oversight of the implementation of regulations in the area of payment operations in relation to payment service providers, electronic money issuers and payment systems;
oversight of the implementation of regulations governing the enforcement against monetary assets in credit institutions and credit unions;
collecting, processing and publishing of payment statistics;
performing operational tasks of payment system management;
performing operational tasks related to domestic and foreign payment operations.

The Currency Area ensures sufficient quantities of currency for the needs of credit institutions and the public in the territory of the Republic of Croatia and manages its logistic reserves, processes and destroys currency. The Currency Area plans the necessary quantities of euro banknotes and euro coins in cooperation with the European Central Bank and the European Commission. It collects and analyses data on currency, prepares regulatory bylaws related to currency and carries out the control of entities subject to the application of these bylaws. It also regulates and manages currency supply and performs the tasks of the National Counterfeit Centre, the National Analysis and Coin National Analysis Centre. The Area develops and improves business processes and work technology in relation to the operational functioning of currency operations, cooperates with other central banks and participates in the work of the bodies of the European Central Bank and the European Commission in the currency area.

Some of the Area's tasks include:

currency issuing;
performing currency-related operational tasks (participation in procurement, storage, processing, replacement, withdrawal and destruction of currency);
regulating and managing currency supply;
managing logistic currency reserves;
defining the features of commemorative, circulation and numismatic euro coins issued by the CNB (nominal amount, design, technical features);
analysing suspect currency;
taking and implementing measures for the prevention of counterfeiting and detection of counterfeit banknotes and coins;
preparing the proposal for the plan of production of revenue stamps and bill of exchange forms;
distribution of revenue stamps and bill of exchange forms of the Republic of Croatia and keeping a record on the stock and sale;
participation in the destruction of materials for printing banknotes, minting coins and printing revenue stamps and bill of exchange forms;
governing regulations in the area of currency operations;
collecting and processing currency statistics;
controlling compliance by banks and other entities that are subject to the application of regulations governing currency operations; and
participation in the work of the bodies of the European Central Bank and the European Commission in relation to currency.

The International and European Relations Area is responsible for the tasks of European and international relations, in particular of relations with international financial institutions. The Area performs the tasks related to the activities and policies of European Union (EU) institutions and the relevant government administration bodies, including the Permanent Representation of the Republic of Croatia to the EU in Brussels, as well as tasks related to the activities and policies of international financial institutions, including within the Office of the Executive Director for the Dutch-Belgian Constituency with the International Monetary Fund (IMF) and the coordination of technical cooperation activities.

Some of the Area's tasks include:

preparing materials and positions – independently and in cooperation with the competent expert services of the CNB – for the meetings of structures within the European Central Bank, including the European System of Central Banks (ESCB) and the Eurosystem, the European Systemic Risk Board and the EU Council attended by the members of the CNB's management;
participation in other relevant activities arising from the membership of the RC in the EU and the CNB in the ESCB;
preparing internal information and reporting on EU activities and policies of interest for the CNB (in particular, publications, initiatives and proposals of the European Commission);
preparing materials and positions on the policies of international financial institutions (primarily the IMF and the Bank for International Settlements) for the purposes of the participation of the RC and/or the CNB in the work of the aforementioned institutions and compiling the materials on the relations of the RC and the CNB with the aforementioned institutions;
carrying out financial and legal activities arising from the membership of the RC/the CNB in international financial institutions in line with the adopted regulations;
organising visits of the IMF missions and other international financial institutions, as well as preparing the participation of the CNB delegation in the work of the management bodies of international financial institutions;
coordinating activities at the CNB level in relation to the negotiations on the accession of the RC to the Organisation for Economic Cooperation and Development (OECD), as well as participation in the work and analysing and preparing the materials and positions for the purpose of participation in the work of certain OECD committees and working groups.

The Controlling, Finance and Accounting Area implements a management-oriented controlling concept, which includes strategic and operational controlling, performs the accounting tasks of compiling, control and processing of data on funds, sources of financing, revenues and expenditures of the Croatian National Bank, prepares the financial statements in line with legal regulations in order to provide support to business decision-making and management and to other end users.

Some of the Area's tasks include:

managing the process of operational and strategic planning and the process of reporting on the implementation of the plans;
providing timely analysis, information, advice and guidelines for the implementation of plans and achievement of objectives;
analysing and compiling information pertaining to costs with a view to achieve efficient cost management;
processing data based on reliable and accurate accounting documents on transactions and keeping business records (journal, general ledger, subsidiary ledgers);
compiling and submitting the daily balance sheet to the European Central Bank in accordance with the set guidelines of the European Central Bank;
preparing and compiling annual financial statements subject to audit (balance sheet, profit and loss account, notes to the financial statements), compiling financial statements for statistical, tax and other purposes; compiling internal information based on the analyses of accounting data;
cooperation with ESCB bodies.

The Information Technology Area develops and maintains the information system, cooperates with organisational units in preparing user requests and the analysis of the business needs of business functions, performs the tasks of designing and programming of applications with the application of ISO quality standards, manages the network and operating systems, provides timely user support, ensures the protection and safety of the information system and manages databases, reporting systems and documents, cooperates with institutions in the RC and the EU with regard to the development and improvement of the Croatian National Bank's IS.

Some of the Area's tasks include:

developing, designing, implementing and maintaining application software;
monitoring and applying system analysis and programming methods;
monitoring the development, selecting and maintaining of software;
defining the methodology and exchanging of data between the Bank and other participants in the banking and financial system;
implementation and administration of operational systems and databases;
developing and maintaining a communication network for data transfer;
monitoring, evaluating and applying measures for the improvement of information system safety;
maintaining the IT equipment.

The Support Services Area is responsible for human resources management, technical and general services, procurement and business protocol.

The Human Resources Department:

developing business processes and organisational design;
planning and implementing the recruitment process, coordinating employee education and managing career development and employee performance;
drafting internal bylaws related to employment;
performing other tasks related to employment.

The Technical Services Department:

managing technical projects, coordinating, monitoring and supervising the investment construction of buildings or restoration of the Bank's business premises;
maintaining business premises and infrastructure (facilities, installations, devices and equipment);
implementing measures aimed at the protection of environment and nature, managing waste and performing cleaning tasks;
procuring necessary goods and services.

The General Services Department:

providing the services of receiving, filing, delivering and dispatching mail and documents, coordinating the work of the telephone exchange and tasks related to the transport of Bank's employees;
providing restaurant services for employees and the Bank's protocol;
organising the use of spatial resources and the maintenance of the Bank's interior;
procuring necessary goods and services.

The Procurement Department:

coordinating procurement tasks in the Bank;
participating in the entire procurement process and drawing up agreements regarding procurement;
providing expert opinions and recommendations;
representing the Bank before competent bodies in procurement processes;
drawing up the Bank's Procurement Plan.

The Business Protocol Department:

organising protocol and other business events;
managing representational funds;
organising business trips.

The Communications Area performs the tasks of external, internal and digital communication, the tasks of preparing, editing and publishing of publications, proofreading and translation and information and documentation tasks.

The External, Internal and Digital Communications Department:

organisation of the work with the media (conferences, meetings, seminars, workshops, public appearances of employees and officials);
providing answers to queries regarding the CNB's activities raised by the media, the public, companies and institutions;
providing information and explanations, warnings to the public, press releases and comments (through paper and electronic media, the web, social networks, videos, animations, mobile applications, etc.);
public opinion polling;
developing, proposing and using adequate up-to-date communication formats to explain the mandate, tasks and roles of the CNB and economic and financial terms and topics to different audiences;
photographing, video filming and editing;
maintaining the Bank's intranet and Internet pages, programming, designing, implementing and administering the Bank's intranet and Internet pages;
creating and managing the Bank's social network content;
designing and producing special promotional multimedia content.

The Publications Department:

developing and editing regular publications and proposing new formats;
technical editing of publications and graphic layout preparation of the material for the website and the press;
graphic layout preparation and desktop publishing of Bank materials issued in printed and/or electronic form;
developing and promoting CNB publication activities;
monitoring publication citations and downloads.

The Language and Documentation Department:

defining and implementing linguistic standards of the CNB;
proof-reading and language editing;
providing linguistic opinions on terminology and general linguistic matters;
written translations from Croatian into English and vice versa (laws and other regulations, Bank's internal bylaws, publications, other documents, etc.);
consecutive interpreting;
planning, developing and promoting the library fund;
managing the library and reading room;
managing CNB archives and records.

The Legal Area provides legal assistance to the Bank's management and other organisational units.

Some of the Area's tasks include:

monitoring, studying and proposing laws and other regulations relating to the activity of the CNB and other banks;
providing legal opinion and advice to other organisational units;
controlling the consistent application of legal and other regulations;
drafting and certifying contracts and other documents related to the Bank's business operations;
representing the Bank in proceedings before courts and other government bodies;
taking and initiating appropriate legal actions at the request of individual organisational units of the Bank.

The Office of the Governor provides support to the Bank's decision-making bodies.

Some of the Office's tasks include:

secretarial services to the Governor and holders of coordination tasks designated by the Governor;
secretarial services to the Council of the Croatian National Bank;
coordination, advisory and expert support tasks to the Governor/Deputy Governor.

The Internal Audit Office performs an ongoing and thorough supervision of Bank operation through assurance audits, inspections and advisory engagements. It supports the Bank in achieving its objectives by bringing a systematic approach to assessing and enhancing the efficiency of the Bank's risk management, the adequacy and efficiency of the existing systems of internal control and management processes in the Bank.
The Internal Audit Office is responsible for carrying out the tasks set out in the Audit Charter for the Eurosystem/ESCB and the Single Supervisory Mechanism by participating in the work of the International Auditors Committee and by carrying out joint audit engagements of the Eurosystem/ESCB and SSM functions.

Some of the Office's tasks include:

conducting independent testing and assessment of the overall business activity of the Bank and using its analyses, advice and opinions to contribute to its improvement;
assessing the adequacy and efficiency of the existing internal control systems incorporated in the Bank's business processes;
examining the reliability and accuracy of financial and business information and measures, classifying and presenting such information;
examining the compliance of the Bank's operations with policies, plans, procedures, agreements, decisions, laws and regulations.

The Security Office manages the Bank's security system and defines the methods and techniques to improve the Bank's security system.

Some of the Office's tasks include:

coordination and representation of the Bank in the preparation of the Threat Assessment, Protection Plan and Bank security study;
managing the Bank's physical and technical security, performing operational tasks pertaining to the security of the Bank's employees, assets and systems and managing fire protection in the Bank's facilities;
managing occupational protection;
managing the security of the Bank's information system, controlling and supervising information system security;
maintaining a database of security issues, incidents and risks;
assessing security risks and managing the activities for their mitigation or elimination;
evaluating and improving physical security and protection systems and access control systems and managing safety in crisis situations.

The Consumer Protection Monitoring Office protects the rights of consumers using the financial and banking services of credit institutions, credit unions and credit intermediaries in consumer housing loans within its competence under law.

Some of the Office's tasks include:

promoting and encouraging the development of good practice of financial service providers towards their users;
developing activities aimed at increasing the transparency in the work of credit institutions, credit unions and credit intermediaries in consumer housing loans;
proposing subordinate legislation governing consumer protection within its competence;
providing opinion or information related to the application of regulations;
implementing financial education to pupils and students;
receiving complaints and acting in case of regulation violation.

The Credit Institutions Resolution Office, in accordance with its legal powers, assesses the feasibility and credibility of resolution of credit institutions that experience financial difficulties.

Some of the Office's tasks include:

drawing up and updating of credit institution resolution plans;
execution of resolution;
participation in the work of resolution colleges;
cooperation and coordination of the work of resolution authorities, supervisory authorities, government administration bodies and other institutions in the country, the European Union and abroad;
drafting regulations within its scope of activities.

The Foreign Exchange Regulation Office drafts foreign exchange regulations and performs the tasks of licensing of authorised exchange offices.

Some of the Office's tasks include:

drafting of foreign exchange regulations and regulations governing the operation of authorised exchange offices;
issuance to and revoking of authorisations to conduct exchange transactions from authorised exchange offices;
compiling and processing of data on authorised exchange offices and their trading with foreign cash;
preparing and publishing the list of authorised exchange offices and reports on their trading with foreign cash.

The Succession Issues Coordination Office participates in the distribution of assets and liabilities of the former SFRY in accordance with Annex C of the Agreement on Succession Issues.

Some of the Office's tasks include:

cooperation with government administration bodies and other competent institutions in the country and abroad on succession issues;
participation in the work of commissions and working bodies in charge of succession issues;
analysing and preparing working materials.

The Office for Coordination of Prudential Supervision, Oversight and Risk Management Activities coordinates daily cross-sectoral activities of the supervision and the horizontal functional units, improves the organisation of supervision by developing supervisory and oversight methodologies, provides support to the implementation and integration of regulations into supervisory processes in line with European supervisory practice and ensures the quality and enables the optimal process of supervisory decision-making and the smooth transition into the close cooperation mechanism.

Some of the Office's tasks include:

coordination of supervision and oversight tasks;
assuring development quality of methodologies and supervision and oversight processes;
performing inter-institutional cooperation;
organisation and implementation of education in the area of supervision and oversight.

The Compliance Office promotes ethical behaviour of employees, provides education, advice, opinions, instructions and recommendations, prepares the policies and procedures governing Bank's ethical values, monitors the implementation of the Code of Ethics and identifies, assesses and monitors the risks related to money laundering and the financing of terrorism at the level of the Bank.

Some of the Office's tasks include:

promoting compliance of Bank employees with the Code of Ethics;
regulation of conduct with the aim of the prevention of money laundering and terrorist financing at the level of the Bank and the implementation of international restrictive measures;
carrying out oversight;
analysing and reporting.

The Office for the Supervision of Entities in Non-Performing Loan Sales is responsible for the supervision of operation of credit servicers.

Some of the Office's tasks include:

handling complaints;
authorisation of credit servicers;
conducting on-site and off-site inspections of credit servicers;
maintaining a national register of credit servicers.

The Financial Risk Management Office identifies, assesses and manages risks faced by the Croatian National Bank in managing its financial assets and in performing the tasks of monetary policy implementation as part of the ESCB.

Some of the Office's tasks include:

a comprehensive analysis of financial, operational and climate risks and other factors relevant for the portfolios of own financial and monetary assets;
continued monitoring and assessment of risks, measuring and evaluating the performance and reporting on risks and performance;
proposing the adequate risk budgeting for financial assets and setting the limits to ensure that the risks remain at an acceptable level;
preparing expert opinion on the adequate level of provisions for financial risks with the aim to ensure the optimal level of risk buffers.

The Visitors' Centre is the organisational unit of the Croatian National Bank that designs and organises lectures, workshops and seminars for pupils, students, teachers and other interested public on topics from the scope of activity of the central bank. The aim is to gain or enhance knowledge of the economy and finance, in particular on central bank activities and personal finance management. Through the mentioned educational activities, adapted to the users' previous knowledge and age, the CNB seeks to contribute to the strengthening of economic and financial literacy of citizens and make young people interested in economic topics.

Some of the Centre's tasks include:

creating content and devising methods related to education activities of the CNB's Visitors' Centre;
organising and coordinating educational visits of students, pupils and other visitors;
carrying out education for various target groups;
promoting the Centre's role in public.

Information and Education Centre "Moneterra – the Money Museum of the Croatian National Bank" is responsible for maintaining and keeping Moneterra's permanent physical and virtual exhibitions current and updated, proposes and prepares occasional thematic exhibitions and organises workshops, forums, lectures and similar activities in Moneterra's premises.

Some of Moneterra's tasks include:

educating the public about the nature and history of money, monetary policy, central banking and personal finance;
interpreting Moneterra's content;
organising guided tours through exhibitions and interpreting interactive digital exhibits to visitors;
designing Moneterra's additional activities, such as, thematic exhibitions, creative workshops, exhibitions of children's works and similar activities;
organising and holding occasional exhibitions.