Other measures and activities

Published: 14/12/2017 Modified: 30/9/2021

Decision repealing the Decision on a temporary restriction of distributions

Pursuant to its Decision on a temporary restriction of distributions of 14 January 2021 (Official Gazette 4/2021, hereinafter referred to as: Decision), the Croatian National Bank imposed a restriction on credit institutions’ distributions until 31 December 2021, which includes dividend distribution, creation of an obligation to make dividend distribution, redemption of own shares and award of variable remuneration.

In accordance with Article 4 of the Decision, in early September 2021 the Croatian National Bank reviewed the existence of the grounds which prompted the adoption of the Decision, and assessed that since the adoption of the Decision, the circumstances have changed sufficiently to justify the early revocation of the Decision as of 1 October 2021.

A good progress in population vaccination rollout and generally a more favourable epidemiological situation ahead of summer 2021 paved the way for a relaxation of epidemiological measures. Combined with a good tourist season, this strengthened the economic recovery, especially in terms of the most severely affected activities, which is also evident from the growth in corporate income. In addition, the firms’ reliance on fiscal support diminished considerably, while exits of firms from the market remained low.  Credit institutions remained well-capitalised throughout the observed period, owing to reinvested earnings, among other things. The stability of the credit institutions’ operations enabled unimpeded financing of all domestic sectors. In the light of the foregoing, the Croatian National Bank assessed that there is no longer a need to pursue a comprehensive macroprudential measure to restrict distributions, and decided to repeal the Decision concerned.

Decision repealing the Decision on a temporary restriction of distributions (OG 106/2021)

Decision on a temporary restriction of distributions (OG 4/2021)


Recommendation on actions in granting non-housing consumer loans

In efforts to mitigate credit risk in consumer loans, as part of its task of contributing to the stability of the financial system as a whole and in line with pursuing an intermediate macroprudential policy objective, the CNB recommends to all credit institutions providing lending services to consumers in the Republic of Croatia that, in determining a consumer’s creditworthiness for all non-housing consumer loans with original maturity equal to or longer than 60 months, they take into consideration minimum costs of living that may not be less than the amount prescribed by the act governing a part of salary exempted from foreclosure.


Recommendation to mitigate interest rate and interest rate-induced credit risk in long-term consumer loans

In efforts to mitigate interest rate risk for consumers and interest rate-induced credit risk for banks, the CNB adopted a recommendation for credit institutions to mitigate that risk. It is recommended that credit institutions offer clients the possibility of changing loan financing conditions so that consumers having loans with variable interest rates could protect themselves against interest rate risk.