ZAGREB, Oct 27 (Hina) - The Croatian National Bank (NBH) on Wednesday assessed that a majority of banks were operating in the manner of satisfactory stability.
ZAGREB, Oct 27 (Hina) - The Croatian National Bank (NBH) on
Wednesday assessed that a majority of banks were operating in the
manner of satisfactory stability.#L#
The Central Bank's Council today discussed a report on basic
indicators of the work performed by Croatian banks in 1998 and on
developments in the Croatian banking systems this year.
Assessments and conclusions drawn from the discussion will be
starting points for determining a strategy for the development of
the banking in Croatia, read a statement issued by the Bank.
At the end of 1998, there were 60 active banks in Croatia, and eight
of them were in owned by the state predominantly. Eight banks were
in the majority ownership by foreigners. The total assets amounted
to 103 billion kuna (14.5 billion US dollars), or 9.6 percent more
than a year before. There were 36 savings banks in the Croatian
banking system at the end of last year, but just about 1.5 percent of
assets went on them.
According to the central bank, at least four fifths of banks deserve
satisfactory marks for their operations if their participation in
the market is evaluated.
The Bank's Council proposed, last year and this year, the
instigation of bankruptcy procedures for eight banks. The Croatian
public accepted this purification of the banking system in a
encouragingly calm manner. In the recent months saving has been
moderately but continuously rising. The removal of bad banks from
the market has had effects on the ratio of offers and demands on the
money market and on the drop in interest rates, the statement read.
(hina) jn ms