Bank Resolution in Croatia: Inflection Points, Institutional Resettling, and Governance Perspectives

Authors

  • Ivana Parać Croatian National Bank
  • Ivana Bajakić Faculty of Law University of Zagreb
  • Marta Božina Beroš Juraj Dobrila University of Pula, Faculty of Economics and Tourism

Abstract

The establishment of the second pillar of the Banking Union (BU) unquestionably confirmed the social and economic significance of appropriate bank resolution and crisis management regimes as one of the core components of prudential frameworks. In this regard, the Croatian experience offers an intriguing case study in terms of institutional arrangements, regulatory approaches, and policy decisions that construct an appropriate resolution and crisis management regime in the context of a post-transition economy. Therefore, this paper examines bank resolution in Croatia from an evolutionary standpoint, focusing on economic complexities and institutional entrepreneurship as the primary drivers of the convergence of a crisis-forged system into a larger resolution and stabilisation framework represented by the BU’s Single Resolution Mechanism. Despite episodes of exceptional market disruptions, the paper identifies ‘success factors’ in banking sector restructuring, macroeconomic stabilisation, and institutional empowerment in Croatia through a qualitative, documentary analysis of a variety of primary and secondary sources. Furthermore, based on an analysis of actions taken in the resolution of ‘Sberbank’, the paper sheds light on recent issues in bank resolution governance within the broader BU framework.

Keywords: bank crisis, prudential regulation, bank resolution, Single Resolution Mechanism, Croatian National Bank.

 

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This work is licensed under the Creative Commons Attribution − Non-Commercial − No Derivatives 4.0 International License.

 

DOI: https://doi.org/10.3935/cyelp.19.2023.518

 

Suggested citation: I Parać, I Bajakić and M Božina Beroš, ‘Bank Resolution in Croatia: Inflection Points, Institutional Resettling, and Governance Perspectives’ (2023) 19 CYELP 185.

Author Biographies

Ivana Parać, Croatian National Bank

Head of Financial and Supervisory Department, Croatian National Bank

Ivana Bajakić, Faculty of Law University of Zagreb

Jean Monnet Professor of EU Financial Markets and Regulation, University
of Zagreb Faculty of Law

Marta Božina Beroš, Juraj Dobrila University of Pula, Faculty of Economics and Tourism

Jean Monnet Professor, Juraj Dobrila University in Pula, Member of the Associated Researchers Group of the European Banking Institute, Alternate Member of the Board of Appeal of the European Supervisory Authorities

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Published

2023-12-07

How to Cite

Parać, I., Bajakić, I., & Božina Beroš, M. (2023). Bank Resolution in Croatia: Inflection Points, Institutional Resettling, and Governance Perspectives. Croatian Yearbook of European Law and Policy, 19, 185–206. Retrieved from https://www.cyelp.com/index.php/cyelp/article/view/518

Issue

Vol. 19 (2023)

Section

Articles

License

Copyright (c) 2023 Ivana Bajakić, Ivana Parać Vukomanović, Marta Božina Beroš

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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