Government sends proposal to amend Credit Institutions Act to Parliament

Zagreb - The government sent a proposal to amend the Credit Institutions Act to Parliament on Monday ahead of the changeover to the euro, extending the catalogue of crimes being taken into consideration in assessing the suitability of shareholders and board members of credit institutions.

Presenting the proposal, Finance Minister Marko Primorac said that this Act was being amended primarily because Croatia was adopting the euro as legal tender on 1 January 2023.

In certain definitions, amounts stated in the national currency kuna will now be given in euros, and amounts of the initial capital of credit institutions and of fines provided for violations of the law will be changed.

With the adoption of the euro, the Croatian National Bank becomes a full member of the Single Supervisory Mechanism.

The supervisory board of a small credit institution will be required to establish a risk committee or, in exceptional cases, combine a risk committee with an audit committee, Primorac said.

The proposal was put to public consultation from 8 to 22 August.