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BUSINESS PEOPLE BELIEVE CROATIA NEEDS STRONG STATE-RUN BANK

ZAGREB, Aug 4 (Hina) - Foreign banks could have taken over a more active role in the recovery of the Croatian economy in recent years, according to the opinion of 60 percent of directors of Croatian firms, who were respondents to a poll conducted by a Zagreb-based economic journal "Privredni Vjesnik" and Studio Weber. Even 75 percent of the respondents believe that Croatia needs a strong state-run bank which will be oriented towards the stimulation of the national entrepreneurship. The poll has recently been carried out among directors of 88 Croatian companies, within research called "Croatia's Banking System In the Eyes of Business People." The idea about the establishment of a state-run bank, which will be directed towards strong encouragement of the development of national economy, in the current conditions when 85 percent of the banks' assets in Croatia is alr
ZAGREB, Aug 4 (Hina) - Foreign banks could have taken over a more active role in the recovery of the Croatian economy in recent years, according to the opinion of 60 percent of directors of Croatian firms, who were respondents to a poll conducted by a Zagreb-based economic journal "Privredni Vjesnik" and Studio Weber. Even 75 percent of the respondents believe that Croatia needs a strong state-run bank which will be oriented towards the stimulation of the national entrepreneurship. The poll has recently been carried out among directors of 88 Croatian companies, within research called "Croatia's Banking System In the Eyes of Business People." The idea about the establishment of a state-run bank, which will be directed towards strong encouragement of the development of national economy, in the current conditions when 85 percent of the banks' assets in Croatia is already concentrated in the hands of foreign banks, seems to enjoy the support from Croatian managers. Over a half of the respondents believe that the incumbent Croatian Bank for Reconstruction and Development (HBOR) could be transformed in such state-run bank. In mind of 68 percent of the questioned managers, the banks which have been operating in Croatia, have improved their work. To corroborate their statement they cited new services of the banks, lower interest rates, better conditions for taking loans, better flexibility and reliability as well as security of the banks. According to the poll, 57 percent of the respondents believe that the arrival of foreign banks in Croatia has improved the quality of banking services only in some segments, whereas one third (34 percent of the respondents) maintains that the arrival of foreign banks helped improve the quality of all the segments of the Croatian banking system. According to 61 percent of the questioned directors, foreign banks could have taken over, to a greater degree, a more active role in the revival of the national economy, while 30 percent of the respondents maintains that they could have assumed a somewhat more active role considering the potential of such financial institutions. Asked about the further concentration and merger of banks in Croatia, 52 percent of the questioned directors said such process should be allowed but it should be carried out under altered regulations. In addition, 23 percent believes that the further concentration is inevitable, while another 23 percent of respondents maintain that the further process should be stopped whatever it costs. (hina) ms

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