Hrvatska Postanska Banka Has New Service for Croatian Account Holders
December the 29th, 2020 - Croatian account holders at Hrvatska postanska banka (HPB) will be the ones to be able to enjoy a unique service in Croatian terms, and one which many people, particularly foreigners, find themselves discussing.
As Poslovni Dnevnik writes, given the fact that it is constantly expanding and improving the offers of its products and services for its numerous different groups of clients, and based on the needs and requirements of residents who do not have the ability to collect foreign checks in the Republic of Croatia, Hrvatska postanska banka has now decided to offer the service of processing foreign checks within its business network.
Hrvatska postanska banka is usually striving to simplify financial operations for Croatian residents who receive their pensions or other benefits through means issued from outside of the Republic of Croatia, and to provide them with an accessible and fast way to pay their funds. As such, Hrvatska postanska banka's brand new service is extremely important in cases when the payers or issuers of foreign checks insist on payment by cheque.
Hrvatska postanska banka accepts bank checks issued in Switzerland, Liechtenstein, Norway, all European Union countries except France, Denmark and Great Britain, and it even accepts US Treasury checks from the United States of America, ie those in euros, US, Australian and Canadian dollars, Swiss francs, British pounds, Swedish and Norwegian krone and Japanese yen.
In the processing of foreign checks, Hrvatska postanska banka acts as an intermediary in the business being done between the issuer and the user of the cheque in accordance with all appropriate international standards. All that is needed to cash a foreign check is to have a foreign currency transaction account opened with this bank.
This is a unique service on the Croatian market and is, as previously touched on, often the topic of conversation among foreign residents who tend to come unstuck when faced with having to deal with foreign currencies. The new service can only be realised in Hrvatska postanska banka centres and branches.
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Croatian Banks to be More Resilient to Financial Shocks in 2021
December the 10th, 2020 - The new law on the deposit insurance system will significantly strengthen Croatian banks and the Croatian banking system, the State Agency for Deposit Insurance and Bank Rehabilitation (DAB) said.
As Poslovni Dnevnik wrires, as of January the 1st next year, a new law on the deposit insurance system and on the compulsory liquidation of credit institutions will enter into force. It was recently properly harmonised with European directives, which, among other things, will shorten the duration of bankruptcy proceedings of credit institutions and additionally protect citizens and depositors.
Further reform
This new law continues to further reform the banking system of Croatia and the entire European Union, strengthens the ability of banks to withstand financial shocks, which will also include Croatian banks, minimises the cost that taxpayers will bear in the event of problems with banks, and represents a single financial fund that is filled by the payment of credit institutions, not citizens, as was pointed out from the DAB. They also believe that the law will further facilitate the lives of Croatia's residents and offer security when it comes to savings deposits as well as a general increase the stability of the financial system, which is becoming much more resilient to possible financial crises.
The new law, which combines the provisions of the current law on deposit insurance and the law on DAB, seeks to anticipate and regulate situations when a credit institution fails as much as possible, as such a scenario may lead to legal uncertainty regarding the protection of depositors.
In order to protect the financial stability of the system, the new law prescribes the activation of the deposit insurance system when opening a compulsory liquidation procedure against a credit institution.
Additional replenishment
In order to ensure the more efficient use of funds from the deposit insurance system, the new law stipulates that the deposit insurance fund consists of two parts - the basic deposit insurance fund and the additional deposit insurance fund. The purpose of the basic deposit insurance fund, which at any time has 1 percent of insured deposits, is the payment of insured deposits, while the purpose of the additional fund is to replenish the basic fund if its available funds fall below 1 percent of insured deposits.
Furthermore, its task is to support the collection of ex-post premiums, use its funds to take measures to reduce the risk of an insured event, and support the financing of the rehabilitation of credit institutions and the financing of forced liquidation of credit institutions.
Additionally, the new law will harmonise the source of financing according to the acquis communautaire by explicitly stating that the deposit insurance system cannot be financed at the expense of taxpayers, but exclusively at the expense of credit institutions. The entire system is harmonised with European directives and will help to make Croatian banks more resilient to potential future challenges on the country's path to th Eurozone.
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The Banker Magazine: PBZ Wins Croatian Bank of the Year
December the 4th, 2020 - When it comes to Croatian banks, or perhaps it is more realistic to say banks which operate within Croatia, the options are numerous. Despite the amount of choice on the table, PBZ has won the title of Bank of the Year in Croatia thanks to the prestigious The Banker magazine, for which it had to satisfy many very stringent requirements.
As Poslovni Dnevnik writes, a very wide range of quantitative and qualitative criteria were considered for The Banker magazine's award, which is considered the "standard for banking excellence" in the challenging and demanding financial industry.
Dinko Lucic, the president of the management board of the Croatian bank PBZ, on the occasion of the proclamation of it having won The Banker magazine's Bank of the Year Awards 2020, said:
''We're extremely proud of having received this prestigious international award, which our bank has acheived for the second year in a row now, and that pride is especially emphasised during these difficult and very challenging times dominated by the coronavirus pandemic. I would especially like to emphasise that this success wouldn't have been possible without our employees, their continuous commitment and hard work of the entire PBZ Group team, the support of the parent bank team as well as all our clients for whom we're constantly striving to be even better.''
''We're continuing down the path of innovation, focusing on the continuous improvement of our services and customer relations and the further transformation and digitalisation of our business, which proved to be crucial during the pandemic,'' concluded PBZ's Lucic.
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Financial Inspectorate Fines Popular Zagrebacka Banka, Fine Discounted?
As Poslovni Dnevnik writes on the 3rd of November, 2020, the Financial Inspectorate of the Republic of Croatia has issued a decision by which the otherwise popular Zagrebacka banka was found guilty and fined an eye-watering amount.
The guilty verdict comes as a result of the supervision of the Croatian National Bank which established that in the period from the 1st of January 2017 to the 8th of November 2019, Zagrebacka banka failed to implement all of the necessary measures, actions and procedures as prescribed by the Law on Prevention of Money Laundering and Terrorist Financing (ZSPNFT). As a result of the finding, a single fine in the amount of 33,000,000 kuna was published on the CNB's website. However, as Poslovni Dnevnik/Ana Blaskovic reports, the bank has earned a discount on that huge fine, and will now pay ''only'' 22 million kuna.
According to the Misdemeanor Law, if the bank pays the fine within a month, which it will do, Zagrebacka banka will ultimately only pay the aforementioned ''discounted'' amount of 22 million kuna.
The decision of the Financial Inspectorate was made and became final on October the 30th, 2020. This fine is the highest misdemeanor ever imposed on a credit institution in all of Croatia, not only in the field of the prevention of money laundering and terrorist financing, but also in all areas for which the misdemeanor liability of credit institutions can be prescribed. In this case, the Croatian National Bank, as the supervisory body and authorised prosecutor, complied with the obligations under the Misdemeanor Law, informed Zagrebacka banka of its right to come to an agreement, which Zagrebacka banka used, admitted guilt and agreed to accept the aforementioned large fine.
Zagrebacka banka: We have implemented all of the due regulatory measures
''Zagrebacka banka has resolutely implemented all of the due regulatory measures in close cooperation with the competent authorities and remains strongly committed to the continuous strengthening of the system and its processes. The entire set of measures (75) identified by the bank, and ordered by the CNB in its decision, was fully implemented three months before the deadline set by the CNB,'' Zagrebacka banka stated.
The Croatian National Bank has identified a total of 11 violations related to violations of the Law on the Prevention of Money Laundering and Terrorist Financing, in the following areas:
Risk assessment of an individual business relationship
Identifying and tracking suspicious, complex and unusual transactions
Reporting suspicious transactions to the Office for the Prevention of Money Laundering
Implementation of measures of enhanced in-depth analysis of all parties
A system of internal controls to reduce and effectively manage the risk of money laundering and terrorist financing.
The aforementioned violations established by the CNB upon the supervision of Zagrebacka banka were committed in the period from the 1st of January 2017 to the 8th of November 2019, and relate to the following omissions:
It did not implement measures of enhanced in-depth party analysis for 72 clients
It did not analyse the background and purpose of 1,126 transactions that were identified as complex and unusual and didn't have an obvious economic or visible legal purpose
For 2,028 transactions made by parties, the lists of indicators weren't used as guidelines in determining the grounds for suspicion of money laundering or terrorist financing
It failed to report 1,122 suspicious transactions to the Office for the Prevention of Money Laundering
It hasn't established an effective system of internal controls to reduce and effectively manage the risk of money laundering and terrorist financing.
The number, type and duration of identified illegalities indicated structural shortcomings in the implementation of prescribed measures, actions and procedures to prevent money laundering and terrorist financing. Such conduct is particularly unacceptable given the position held by Zagrebacka banka in the financial system of the Republic of Croatia as the largest credit institution.
The amount of the fine imposed is proportional to the determined number and severity of the committed offenses.
After the completion of the CNB's supervision, Zagrebacka banka reorganised its operations and increased its capacity to detect and prevent money laundering and terrorist financing, and proceeded to implement supervisory measures based on the decision of the Croatian National Bank. Zagrebacka banka demonstrated an appropriate degree of readiness to address all of the identified weaknesses within the anti-money laundering and anti-terrorist financing system. Among other things, Zagrebacka banka has committed itself to implementing 75 measures to increase the efficiency and effectiveness of its anti-money laundering and anti-terrorist financing system. In the meantime, Zagrebacka banka informed the CNB that it had implemented all of the measures it undertook.
This case emphasises that the implementation of measures to prevent money laundering and terrorist financing by banks remains an important priority of the CNB and that it is more than determined to take all of the measures to ensure that banks comply with regulations in the field of the prevention of money laundering and terrorist financing. The Croatian National Bank expects banks to have effective and efficient anti-money laundering and anti-terrorist financing systems that should be proportionate to their size, type, scope and the complexity of their operations.
In accordance with the law, the CNB informed the Office for the Prevention of Money Laundering in detail about their decision, as well as all competent state institutions.
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New HPB Payment Service: Instant Payment by E-Mail or Phone
As Poslovni Dnevnik writes on the 23rd of October, 2020, the execution of payment orders which involves the immediate transfer of funds to the payee's account for clients of Hrvatska postanska banka (HPB) is set to become a reality on October the 29th, 2020. On that day, NKSInst, a new HPB payment service for the Republic of Croatia, developed by Fina and approved by the Croatian National Bank, will kick off a new era of development of modern payment service for HPB clients.
The new HPB payment service will be available 24/7, 365 days a year. HPB was among the first banks in Croatia to join a new scheme for instant payments made in Croatian kuna and offer its clients the service of conducting payment transactions in almost real time and continuously available 24/7/365. Transaction speed and constant availability, along with, as always, maximum security, are precisely the main advantages of the new HPB payment system when compared to the execution of standard payments. In order for the order to meet the prerequisites for instant payment, it must be in Croatian kuna, the maximum amount is 100,000 kuna, and the payment/payee must be assigned to a bank that has also joined the instant scheme.
Instant payments are intended for both individuals and businesses, and access to the new HPB payment service is provided through the digital channels mHPB and Internet banking. HPB is also participating in the new payment system as a payee's bank and a payer's bank.
Instant payments allow not only the shortening of the time required for the transactions, but also the possibility of executing it at the moment when it is the most convenient for the service user. It provides the payer with the possibility of the simple fulfillment of that obligation immediately, ie at any time.
In addition to payments made using an IBAN, payment orders will soon be able to be placed according to additional identifiers such as an OIB, a mobile phone number and/or an e-mail address, which the user will pre-register in the system. For these options, users will be able to easily register on mHPB and pay in just a few clicks to a specific mobile phone number from their phonebook or by entering an e-mail or OIB instead of the recipient's IBAN. Orders placed in this way will be able to be executed by both regular and instant payment.
The application of a new innovative instant HPB payment service that enables customers faster and easier financial management is a confirmation of the successful implementation of HPB's digitalisation strategy, further technological progress and dedicated work on the offering of quality to clients that brings new trends in banking and strengthens the bank's overall competitiveness.
The first participants in the NKSInst payment system, apart from HPB, are Partner banka and PBZ, and the Croatian National Bank announced that it supports the development of modern payment services and expects other banks to provide interbank instant payments to their clients throughout 2021.
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OTP Banka Strengthens Status of Leading Croatian Custodian Bank
October the 8th, 2020 - OTP banka has won the title of the best Croatian custodian bank once again, earning an enviably high rating from satisfied clients and no doubt boosting the bank's already high level of respect.
When it comes to banks in Croatia, there are many options. For those who don't want a Croatian bank account for whatever reason now also have the option of companies like Revolut and Transferwise as opposed to having to use foreign accounts which incur additional charges for use abroad. OTP banka, however, has consistently earned high ratings among both regular clients and business ones alike.
As Novac/Jozo Vrdoljak writes on the or the fifth year in a row, the well respected Global Investor / ISF magazine has proclaimed the already popular OTP banka d.d. the best Croatian custodian bank in the category of unweighted ratings according to the opinions of clients, who gave it an extremely high rating of 6.73.
It was necessary for this Croatian custodian bank to meet more than ten demanding criteria, including the provision of settlement services and corporate actions, the quality of reporting on market events, including regulatory changes, and the quality of business relationships, which is one of the most important but also the most difficult points of service for banks to meet.
The Republic of Croatia's OTP banka thus won the highest unweighted ratings as judged by the size of its clients' assets.
"This high rating confirms that clients, despite these challenging times, still consider OTP banka to be one of the best providers of care and protection for clients' assets," read a statement from the aformentioned winning Croatian custodian bank, OTP banka.
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Croatian Banks End Coronavirus Measures, No More Debt Freezing
September the 17th, 2020 - The coronavirus pandemic might still be taking the world by storm, with a predicted rise in the number of serious cases in the upcoming colder months as the virus crosses paths with flu season, but not everyone is keeping their coronavirus measures in place. Croatian banks are one of those institutions set to scrap any special benefits garnered as a result of the pandemic,
As Poslovni Dnevnik writes on the 15th of September, 2020, Croatian banks will no longer freeze debts as they chose to do during the pandemic, and the deficits in citizens' accounts will be determined according to the last three months, depending on their employment status, the amount of their income and the regularity of their repayments.
Croatian banks are, as such, abolishing the popular measures they introduced in an attempt to soften the already dire financial blow caused by the spread of the new coronavirus.
The deadline for debt repayment and the amount of overdraft depends on the policy of each individual bank. Thus, some announced changes to their permitted overdrafts for as early as October, with the possibility of payments made in installments.
Some Croatian banks are starting with changes as of next year.
"In accordance with the General Terms and Conditions, as of September the 7th, 2020, clients will be notified of the announcement of the updates of the amount of the overdraft they're permitted to have, which will be performed on October the 10th, 2020," OTP banka said in regard to the overdraft.
"If the reduction in income is what is bothering people, then the solution can be found in extending the loan repayment period, which causes a reduction in the monthly loan obligation. And, the possibilities of easier repayment, which is in line with their new level of income,'' said Dario Gabric from Erste Bank for RTL.
Addiko Bank will start making changes next year.
"At the beginning of November 2020, we'll inform clients about the new amounts of their overdrafts on their current accounts, which will be available from the 1st of January, 2021," read a statement from Addiko Bank.
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Privredna Banka Zagreb Wins Euromoney "Best Bank in Croatia" Award
The Euromoney Excellence Awards are given worldwide to financial institutions and banks that provide their clients with the highest level of service, innovation and expertise. Privredna banka Zagreb (PBZ) has taken home the ''Best Bank in Croatia'' award.
As Poslovni Dnevnik writes on the 17th of July, 2020, the Euromoney Awards for Excellence 2020 were awarded to Privredna banka Zagreb (PBZ), a member of the Intesa Sanpaolo Group, in the category of the best bank in Croatia, and to Intesa Sanpaolo as the best bank in Italy. As stated, the Euromoney Excellence Awards are given worldwide to financial institutions that provide their clients with the highest level of service, innovation and expertise. A wide range of qualitative and quantitative criteria need to be taken into account for this handing out of these awards and they're considered to be the most prestigious awards in the entire banking industry.
On the occasion of the announcement of this award, Dinko Lucic, President of the Management Board of Privredna banka Zagreb, stated: ''We're extremely proud of [having received] this prestigious international award that has come during these difficult COVID times. I often point this out, but it's true that the real difference is made by people, and the more difficult the situation in the world is, the more important the role of professional, calm and highly educated employees becomes. This award is a confirmation of the continuous commitment and work of our entire Privredna banka Zagreb Group team. I'm proud of all of our employees and on this occasion, I'd like to thank them for their contribution, I'd also like to thank all of our clients for whom we constantly strive to be even better.''
The Euromoney Awards of Excellence were established back in 1992 and were the first of their kind in the whole global banking industry. This year, Euromoney received almost 1,000 applications from banks for a region and country award programme that includes more than fifty regional awards and the award for the best banks in almost 100 countries.
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What Kind of Blow will Coronavirus Pandemic Deal Croatian Banks?
When talking about the economic consequences of the ongoing coronavirus pandemic, could Croatian banks be worse off when compared to other banks operating within the country's immediate region?
As Tomislav Pili/Poslovni Dnevnik writes on the 15th of June, 2020, small and medium-sized companies in Central, Eastern and South-Eastern Europe (CESEE) will face much stricter criteria in terms of being granted loans from banks this year, is one of the main conclusions of a study by the European Investment Bank (EIB).
In addition, the share of non-performing loans will start growing again, for the very first time since back in 2015. According to the research conducted, banks in the CESEE region will face the worst business environment since the 2007 and 2008 financial crises due to the coronavirus pandemic.
In the last six months alone, banks in Croatia's immediate region have witnessed a solid demand for loans, while providing somewhat looser lending terms. However, the EIB's survey of as many as 90 banks concluded that lenders expect a sharp decline in demand for financing, as well as a significant tightening-up of approval conditions and, accordingly, a decline in the rate of approved loans.
Banks expect that it will be primarily households who will first reduce their demand for credit/loans, and not so much the corporate sector. 64 percent of banks in Central, Eastern and South-Eastern Europe expect an increase in the rate of non-performing loans in the second half of 2020.
However, the existing loan portfolio as it currently stands is expected to begin to deteriorate once again, with 64 percent of banks expecting a rise in the rate of ''bad credit'' during the second half of this year.
As for Croatia, the EIB pointed out that on the eve of the coronavirus pandemic, the Croatian banking market could boast of solid profitability, given that in the last six months more than half of foreign banking groups have reported higher returns on capital.
Given that the overall impact of the pandemic still remains quite unclear, in the next six months, Croatian banks unfortunately expect their market dynamics to fall even below regional trends. This is in line with forecasts that Croatia will experience one of the deepest recessions in the entire region, with a worrying nine percent drop in GDP.
While retail lending will be strongly negatively affected by sinking personal consumption, higher demand may come from the extraordinary liquidity needs of companies that had to shut down during the pandemic, backed by fiscal stimulus as well.
In order for banks in the CESEE region to return to pre-crisis levels and to be able to finance the domestic economy, support through instruments such as the European Guarantee Fund will be crucial, according to EIB economist Debora Revoltella.
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CNB Governor Boris Vujcic Explains Croatian Banking System Stability
Just how is the Croatian banking system doing in these tying coronavirus-dominated times?
As Poslovni Dnevnik writes on the 17th of March, 2020, the Croatian National Bank's Governor Boris Vujcic said that since the beginning of last week, there has been some stronger pressure on the kuna exchange rate. He also stated that the CNB has intervened and stabilised the exchange rate and announced that it will continue to work.
According to Vujcic, the Croatian banking system is currently very stable and that, despite the coronavirus epidemic which is rocking the global economy, there is currently no threat to its normal functioning, so residents certainly do not need to withdraw their cash from banks.
''As for the Croatian banking system, it's very well capitalised and very stable and there's no need for residents to start withdrawing their money from banks. At the moment, we don't see any problems that could jeopardise any normal functioning, regardless of what will happen with the virus or the epidemic,'' Vujcic told reporters.
"The kuna exchange rate will remain as stable as it has been for the last quarter of a century," Vujcic assured strongly.
Namely, since the beginning of last week, the CNB has carried out four foreign exchange interventions, through which more than 1.6 billion euros were sold to banks, bringing a total of 12.2 billion kuna out of the Croatian banking system, and yesterday, after two weeks of the weakening of the kuna, it managed to strengthen against the euro.
Vujcic said that the CNB had very high foreign currency reserves, as well as the ability to create liquidity as and when needed.
When asked about the proposals for the postponing of loan repayments and the request of a state guarantee scheme, Vujcic replied that the state guarantees should be discussed with the state, but also said that the Croatian banking system and the population as a whole are currently in an unusual situation thanks to coronavirus.
"It's in everyone's interest to overcome this situation by postponing some claims/loans that exist against those who will not be able to do business in due time due to the epidemic," Vujcic said, adding that despite the current issues, he believes that the economy then has the capacity to overcome it.
He believes that it is reasonable to expect a budget rebalance, as well for the CNB to accordingly adjust its economic growth projection, which it will do when the time comes.
"If the cycle of this epidemic is the same as we've seen in other countries, then we could see an economic recovery in the third quarter, but it depends a lot on the length of that cycle. The sooner it's over, the sooner the recovery will begin,'' Vujcic said.
He expects that the Croatian economy will see some structural changes, such as a likely increase in agricultural production, which he hopes will remain as such even after the coronavirus crisis passes, in the sense that it will increase Croatia's self-sufficiency in this regard.
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