Within this cooperation, the Croatian National Bank is obligated to notify the European Central Bank in advance of intended macroprudential decisions, and its representatives also participate in the work of the ECB bodies that discuss national macroprudential measures in euro area members and their effects on financial stability. If the European Central Bank assesses it necessary for the purpose of maintaining financial stability in the individual country or the euro area, taking into account the specific features of the national financial system and the economic cycle, it is authorised to apply measures based on the harmonised legal framework of the European Union that are stricter than national measures.

Within the framework of the European System of Financial Supervision (ESFS), comprising the authorities responsible for microprudential and macroprudential supervision in the EU, the Croatian National Bank participates in the work of the European Systemic Risk Board (ESRB) and the European Banking Authority (EBA).

The ESRB is responsible for the macroprudential oversight of the EU financial system and the prevention and mitigation of systemic risk with the objective of safeguarding the stability of the EU financial system as a whole. Its area of activity includes banks, insurers, investment companies and funds, financial market infrastructures and other financial institutions and markets. The ESRB began work in 2011 and with its recommendations directed the development of institutions and instruments for the implementation of macroprudential policy in the European Union. It is located at the European Central Bank, which also provides analytical, statistical and logistic support to the work of that body.

In pursuit of its macroprudential mandate, the ESRB monitors and assesses systemic risks and, where appropriate, issues warnings and recommendations. Although the ESRB has no instruments at its disposal which are legally binding for national regulatory authorities, the competent national authorities are obligated to comply with the contents of warnings and recommendations or explain why they have not complied with a warning or recommendation (the so-called ‘comply or explain' procedure). The application of the above principle ensures a uniform application of the ESRB's recommendations and warnings across member states and allows the addressees to justify any discrepancies by the specific features or exceptional circumstances that prevent full compliance.

The CNB participates in the ESRB work through membership in the ESRB working bodies. The main ESRB body is the General Board, which is composed of representatives of the central banks and national supervisors of all EU Member States, the ECB, the European supervisory authorities (EBA, EIOPA, ESMA), the European Commission and the ESRB advisory bodies. At the General Board meetings, the Croatian National Bank is represented by three members (two from the CNB and one from HANFA), with the Governor as a voting member. The representatives of the CNB and HANFA, together with the representatives of other central banks and supervisory authorities also participate in the ESRB advisory and technical working groups. The CNB is also obligated to comply with the recommendations and warnings issued by the ESRB.

The EBA is an independent EU supervisory authority with the mission to build a single regulatory and prudential framework for the entire EU banking sector, with the overall objective of creating an efficient, transparent and single market for banking products and contributing to the financial stability across the EU. One of its main tasks is to contribute to the creation of the European Single Rulebook in banking, through the development of Technical Standards and Guidelines with the aim to provide a single set of harmonised prudential rules for financial institutions throughout the EU. In its work, the EBA cooperates closely with national supervisory authorities, the ESRB and other European supervisory authorities competent for non-banking financial intermediaries and financial markets. The CNB participates in EBA's work through the representatives in its main body, the Board of Supervisors, and in permanent or ad hoc working groups.