The 4th Session of the Financial Stability Council

An assessment of the main risks to financial stability in the country coming from the banking and non-banking financial sectors was the main topic of the 4th session of the Financial Stability Council, which met on Tuesday, 7 July 2015, chaired by Boris Vujčić, Governor of the Croatian National Bank and attended by three CNB Vicegovernors, Boris Lalovac, Minister of Finance, Petar-Pierre Matek, President of the Board of HANFA, Marija Hrebac, Director of the State Agency for Deposit Insurance and Bank Resolution and their associates.

The Council discussed financial stability in the banking and non-banking financial sectors, with particular attention being given to the stress testing of the banking sector and the implementation of Solvency II regulations in the non-banking sector. The Council also discussed the possible impact of the current situation in Greece on the financial stability in Croatia. It was assessed that there are no direct risks, while an increase in borrowing costs could be the main indirect risk. This risk has not yet been observed, i.e. the Greek crisis has failed to make a noticeable impact on the prices of Croatian bonds.

At this session, the Council adopted its annual report for 2014, while Council members were informed on the activities related to the maintenance of capital buffers in Croatia.