How does the CNB ensure the NRR computation quality

Published: 29/5/2020 Modified: 1/3/2023

The CNB performs input data checks for the NRR computation at five levels and in several iterations. These checks are described in more detail in the NRR computation methodology. In this way the CNB ensures that the NRR computation includes all data relevant for the accurate quantification of average funding expenses of the Croatian banking sector and that it excludes any unreliable data or data that could distort the quantification.

Furthermore, the CNB has internal procedures in place for the assessment and prevention of the conflict of interest to which CNB employees linked with the NRR computation could be exposed. Such potential conflicts of interest are subject to ongoing assessments, in line with the Code of Ethics of the CNB’s Employees.

Finally, procedures used to check data based on which the NRR is computed and the NRR computation procedure are subject to regular audits by the CNB’s Internal Audit Office, aimed at ensuring their compliance with the best global practices.