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SABOR STARTS DEBATE ON NEW BILL ON BANKS

ZAGREB, Jan 23 (Hina) - The Croatian parliament on Wednesday opened a debate on a new bill on banks, which should regulate the operation of banks in a comprehensive manner and in line with European Union standards. The bill introduces a uniform amount of stock capital necessary for the establishment of a bank, the lowest amount being 40 million kuna. The current law includes three options - 20, 40 and 60 million kuna of stock capital, depending on the bank's scope of activities. Savings banks will also have to increase their stock capital, the deadline set by the government being the end of 2006. Deputy Finance Minister Damir Kustrak told MPs the bill regulated cooperation with the supervisory bodies of banks from EU countries. The bill includes detailed solutions regarding client protection and introduces a new institute of so-called special management. It also provides a detailed description of differences between bank service
ZAGREB, Jan 23 (Hina) - The Croatian parliament on Wednesday opened a debate on a new bill on banks, which should regulate the operation of banks in a comprehensive manner and in line with European Union standards. The bill introduces a uniform amount of stock capital necessary for the establishment of a bank, the lowest amount being 40 million kuna. The current law includes three options - 20, 40 and 60 million kuna of stock capital, depending on the bank's scope of activities. Savings banks will also have to increase their stock capital, the deadline set by the government being the end of 2006. Deputy Finance Minister Damir Kustrak told MPs the bill regulated cooperation with the supervisory bodies of banks from EU countries. The bill includes detailed solutions regarding client protection and introduces a new institute of so-called special management. It also provides a detailed description of differences between bank services, including depositing, granting of loans and other financial services. (hina) sb rml

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