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CROATIAN PARLIAMENT STARTS DISCUSSION ON BILL ON BANKS

ZAGREB, June 27 (Hina) - The Croatian parliament on Thursday began a discussion on a final bill on banks, one of the four bills in the package which should regulate the banking system and the securities market.
ZAGREB, June 27 (Hina) - The Croatian parliament on Thursday began a discussion on a final bill on banks, one of the four bills in the package which should regulate the banking system and the securities market. #L# According to the final bill on the banks, the stock capital necessary for the establishment of a bank should amount to 40 million kuna (approximately 5.5 million euros). The central bank, Croatian National Bank (HNB) will be given the right to control companies which are related to banks. It would be also entitled to follow activities of a bank or a group of banks, which might eventually limit the market competition. The central bank would also determine the statutory reserves for all the banks, and could ask larger reserves for banks that are operating at higher risks. Under this bill, banks must change auditors' company every four year. One auditor will be allowed to draw up at most four consecutive financial reports in one bank. (hina) ms

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