The procedure of compulsory winding-up of credit institutions is prescribed by the Compulsory Winding-up of Credit Institutions Act (OG 146/20). Pursuant to the Act, the Croatian Deposit Insurance Agency exercises the powers of a supervisory winding-up authority which supervises liquidators and assists them in conducting business, monitors the course of bank liquidation proceedings and settling creditors, reviews book transactions and business documentation.
Within its scope, the Agency in particular: adopts the initial balance sheet of the credit institution and approves the Compulsory Winding-Up Plan proposed by the liquidator, considers the liquidator's reports on the winding-up proceedings and the implementation of the compulsory winding-up plan, approves the winding-up proceedings credit institutions in compulsory winding-up, and gives consent to the liquidators for legal actions that are of special importance for the compulsory winding-up procedure.
The Agency proposes to the court the liquidator from the list of liquidators which it determines, but also its dismissal in accordance with the Act.
Furthermore, the Agency may finance legal actions for the purpose of sale or transfer of assets, rights and obligations of a credit institution in compulsory winding-up proceedings, in whole or in part, approved in the compulsory winding-up plan, provided that the cost of such legal actions is less than the losses deposits suffered in the process of compulsory winding-up without taking the above legal action.