ZAGREB, July 3 (Hina) - The Croatian parliament on Wednesday adopted four laws aimed at regulating the banking and securities markets.
ZAGREB, July 3 (Hina) - The Croatian parliament on Wednesday
adopted four laws aimed at regulating the banking and securities
markets. #L#
The package includes the Law on Banks, which stipulates that the
stock capital necessary to establish a bank is 40 million kuna
(EUR5.48 million).
Savings banks which increased the stock capital to 20 million kuna
by the end of 2001 may continue operating as banks.
The law enables the central bank (HNB) to supervise companies
connected with the bank in question, and authorises the HNB to
follow the business activities of banks and bank groups which might
attempt to limit market competition.
In the future, the HNB (Croatian National Bank) will oblige all
banks to form reserves, the amount of which will depend on HNB's
forecast of each bank's business risk.
Parliament also adopted a government amendment to extend by 2006
the deadline for small banks and savings banks to adjust the stock
capital with the new law.
Also adopted were conclusions, moved by the ruling coalition,
binding the government to propose to parliament by the end of the
year a programme for the supervision of financial institutions and
a bill on the establishment of micro-lending and guarantee
institutions. The opposition objected to these conclusions,
claiming they should have been regulated in the Law on Banks.
A conclusion on the State Audit Office enables insight into bank
transactions. This conclusion executes a prior parliamentary
conclusion on management buyout loan schemes.
Also adopted was the Law on Savings and Loan Cooperatives, which
enables cooperatives to carry out money transfers for their
members. The government abandoned a solution whereby said
cooperatives were to carry out money transfers solely based on a
contract with a business bank.
Parliament also adopted the Law on the Securities Market, which
bolsters the role of the Securities Commission. In the future, the
commission will be able to prohibit and suspend activities on the
stock exchange and change or abolish rules for the stock exchange
and the Central Depository Agency.
Also adopted was the Law on the Takeover of Joint Stock Companies,
which stipulates that invitations for the takeover of 25 percent of
shares or more must be announced.
(hina) ha sb