"The situation in the banking sector is very good, it is so good that I have problem convincing people, for example European Commission officials, that it is so even after six years of recession," Croatian National Bank (HNB) governor Boris Vujcic said, stressing that the national banking system was better than the economy.
Vujcic said Croatia was the third-ranked EU country in terms of the soundness of the banking system (capital adequacy).
Deputy Prime Minister Branko Grcic said that the banking sector was very cautious, and that, even though it had a lot of reason for it, the economy was suffering direct consequences of such a restrictive policy.
"Channels between banks and the business sector, namely small and medium businesses, should be opened to revive the economy," said Grcic.
Grcic announced new measures to be launched by the Croatian Bank for Reconstruction and Development (HBOR) and EU operational programmes as part of which around 250 million euros would be distributed into financial instruments in the next seven years.
HUB director Zoran Bohacek called for the implementation of structural reforms. "The problems, not only in the Croatian economy but in the EU economy as well, are of a structural character and that is why the state should resolutely and swiftly carry out structural reforms."
Zagrebacka Banka Management Board chair Franjo Lukovic said the turning point for the Croatian banking system was privatisation, when a large number of banks became a part of international banking groups and consequently increased the quality of its services and introduced higher standards.
"The period since 2009 has been marked by recession banking, characterised by deleveraging, mostly household and corporate deleveraging, an increase in bad loans, and a drop in profitability," Lukovic said, adding that the cost of non-performing loans did not spill over to the state, as in some other countries.
"Banks have been unjustly considered as the culprits, but they are actually victims of a lack of healthy economic policies," he said.
Lukovic said that in the future banking would be simpler, faster, more transparent and cheaper, with fewer stakeholders due to growing regulatory pressures.
Privredna Banka Management Board chair Bozo Prka said that big Croatian banks would be assessed for the quality of their portfolios by the European Central Bank and that they were not afraid of the assessment because of their high liquidity.
HUB has 20 members, which account for more than 97% of the Croatian banks' total current assets.