ZAGREB, Jan 21 (Hina) - The National Bank of Croatia's (HNB) Council on Wednesday's session appointed trustees in four banks - Glumina Banka, Komercijalna Banka, Gradska Banka and Zupanjska Banka. By this act the HNB took supervising
and controlling measures for the first time, according to the new Law on Banks. The law, which came into effect at the end of 1998, elaborated mechanisms by which the Croatian National Bank could react when it noticed irregularities in the work of banks. The law also allows the National Bank to appoint trustees in the cases of serious irregularities in banks' activities. According to the law, if the potential bank losses are greater that bank's equity, or if a bank is incapable of payment, the HNB can appoint a trustee or forward motions to start a bankruptcy proceedings to an authorised court. All authorities of a bank's board, auditing committee and
ZAGREB, Jan 21 (Hina) - The National Bank of Croatia's (HNB) Council
on Wednesday's session appointed trustees in four banks - Glumina
Banka, Komercijalna Banka, Gradska Banka and Zupanjska Banka.
By this act the HNB took supervising and controlling measures for
the first time, according to the new Law on Banks.
The law, which came into effect at the end of 1998, elaborated
mechanisms by which the Croatian National Bank could react when it
noticed irregularities in the work of banks.
The law also allows the National Bank to appoint trustees in the
cases of serious irregularities in banks' activities.
According to the law, if the potential bank losses are greater that
bank's equity, or if a bank is incapable of payment, the HNB can
appoint a trustee or forward motions to start a bankruptcy
proceedings to an authorised court.
All authorities of a bank's board, auditing committee and general
assembly stop immediately after a decision on the appointment of a
trustee has been served on a bank.
A trustee is appointed for a period of six months
(hina) it