ZAGREB, July 17 (Hina) - Croatian President Stjepan Mesic said on Wednesday the remaining state-owned banks and insurance companies should not necessarily be privatised and suggested political structures, authorities, and experts
reach a consensus on the matter.
ZAGREB, July 17 (Hina) - Croatian President Stjepan Mesic said on
Wednesday the remaining state-owned banks and insurance companies
should not necessarily be privatised and suggested political
structures, authorities, and experts reach a consensus on the
matter. #L#
Speaking at today's presentation of the 2001 bank rating, organised
by the Chamber of Commerce and the Business Journal, Mesic said it
was not necessary to privatise the few remaining state-owned
financial institutions, banks, and insurance companies.
The Chamber of Commerce and the Business Journal today presented a
special Business Journal issue, "Banks - Croatia and the World".
The presentation of the tenth issue of the annual bank rating was
sponsored by President Mesic.
Commenting on proposals that Croatia introduce the euro
unilaterally, without the consent of the EU and the European
Central Bank, Mesic said such proposals should be considered very
critically, as they concerned Croatia's national interests. "The
Government, the monetary authorities, economists and politicians
must reach a consensus on the fact that the introduction of the euro
cannot happen over night, that is, without the completed
convergence of the Croatian economy and the EU economies," he
said.
Mesic supported the drawing up of a programme for medium-term,
transitional monetary and other policies which would be based on
the gradual rapprochement with the EU, and suggested the monetary
authorities consider the reaffirmation of the national currency.
He reminded that 94 percent of the banking sector was in the hands of
foreigners, but warned that the structure of bank loans was not such
as to give a more significant impulse to economic recovery and make
the domestic economy more competitive, which he said was the result
of a policy of minimum risk.
Sixteen percent of the banks' assets are deposited abroad, while 10
percent are in the Croatian National Bank, Mesic said, adding that
this pointed to the need to reconsider some of the current policies.
Apart from their stabilising function, which he said was good due to
huge reserves, Mesic said the monetary authorities would also have
to consider their development function.
More attention in the coming period should be paid to the
development of the real sector and employment, he said.
The Business Journal published its first bank rating in 1992, and
the banking sector has developed considerably since then, said
editor-in-chief Zarko Primorac.
The banking sector continued growing and consolidating last year,
with the banks' assets rising by more than 32 percent compared to
the year before. Credit activity and savings deposits increased as
well, Primorac said.
With last year's change in the ownership structure of some banks,
several banking groups were established, and they now hold around
90 percent of the domestic banking market. Those are UniCredito,
with a 30-percent market share, IntesaBci with more than 20, Erste
with more than 10, HypoVereinsbank with 8.5, Raiffeisen with 6.4,
and Hypo Alpe-Adria with a 6.3 percent market share.
The Business Journal lists banks according to their assets, total
and paid-in capital stock, liable capital, assets per employee, and
pre-tax profit.
The two largest banks are the most successful ones - Zagrebacka
Banka is first, while Privredna Banka (Commercial Bank) is second
according to capital stock, liable capital, and assets. Privredna
Banka is first and Zagrebacka Banka second according to paid-in
stock capital and pre-tax profit.
Splitska Banka has moved to the third position from last year's
fourth, while Raiffeisen Banka moved from the seventh to the fourth
position.
(hina) rml