About resolution

Published: 1/1/2016 Modified: 27/4/2021
Resolution is the restructuring carried out by a resolution authority in respect of a credit institution or investment firm for which the relevant competent authority has determined that it is failing or is likely to fail, provided that such proceedings are in the public interest.

It is deemed that resolution is in the public interest where it is necessary for the achievement of and is proportionate to one or more of resolution objectives and where regular insolvency proceedings would not meet those resolution objectives to the same extent.

Resolution is possible if the resolution authority deems that it is feasible and credible, in order to avoid adverse effects on the financial system of the Republic of Croatia or another Member State or the European Union as a whole, and with a view to ensuring the continuity of critical functions of the institution, to carry out resolution proceedings by applying resolution tools or exercising resolution powers.

When applying resolution tools and exercising resolution powers, resolution authorities shall take into account the general principles governing resolution and the achievement of resolution objectives.

The Croatian National Bank is one of the resolution authorities in the Republic of Croatia.