HDZ MP accuses central bank of destroying small banks

MP Goran Maric of the ruling Croatian Democratic Union accused the central bank (HNB) on Wednesday of leading the way in the destruction of small banks "with the vice governor's statements that Croatia doesn't need small banks," whereas he said they should be protected because they were "a jewel of the Croatian economy."

During a parliamentary discussion on the HNB report for the first half of 2015, Maric said that any negative mention of the HNB's performance was seen as if it contained "elements of a coup".

He criticised governor Boris Vujcic for not mentioning the HNB's operating costs during his presentation of the report or the growth of staff costs. Maric said operating costs increased from HRK 296 million to HRK 309 million in 2014 and that there was no other institution where staff costs accounted for 20 percent of total costs.

In his presentation, Vujcic said the HNB's two key tasks were maintaining price and financial stability, and that it was especially successful in maintaining the latter. He said Croatia had the second worst recession in the European Union but no financial crisis and that the banking sector had remained stable. He said that was not by accident but the result of years-long systematic work.

Vujcic said the HNB's monetary policy was "currently extremely expansive" and that it was not an obstacle to economic recovery. "If all stakeholders in the economic policy adopt quality decisions which will go in the direction of correcting the structural weaknesses of the economy, then the current nature of the monetary policy will be more successful in attempts to advance the Croatian economy."

Last update: Wed, 09/03/2016 - 13:01
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