The Council considered the latest economic and monetary developments, the situation in the banking sector in the fourth quarter of last year and a report on the management of foreign exchange reserves in 2006, the central bank said in a statement.
Thirty-three banks and five housing loan banks operated in the Croatian banking system in the last quarter of last year. Sixteen of those banks were in domestic private ownership, while two banks and one housing loan bank were in state ownership. Fifteen banks and four housing loan banks were in foreign ownership, accounting for 91 percent of the overall bank assets.
According to preliminary data, bank loans in the said period increased by 25.3 billion kuna, the banks' debt to their majority foreign owners rose by 11.7 billion kuna, and the capital stock rose by 2.3 billion kuna.
At the end of last year, overall bank assets amounted to 311.1 billion kuna, 16.78 percent more than at the end of 2005. Banks accounted for 304.8 billion and housing loan banks for 6.4 billion of that amount.
Pre-tax bank profit amounted to 4.2 billion kuna, while housing loan banks recorded a loss of 60 million kuna.
Foreign exchange reserves reached 8.7 billion euros, 1.3 billion less than at the end of 2005.
The increase in reserves was achieved mostly through interventions on the foreign exchange market, where the HNB bought foreign currency 12 times to prevent the excessive appreciation of the kuna. The HNB sold foreign exchange only once in 2006.
(1 EUR = 7.35 kuna)