In the year of completion of the European integration process, and almost a year after the positive outcome of the moratorium and the successful entry of Sberbank d.d. in the resolution proceeding, which represented the first resolution case in the Republic of Croatia in collaboration with the Single Resolution Board (SRB), the Croatian Deposit Insurance Agency (CDIA) had the honor of organizing this year's first Meeting of the Single Resolution Fund (Fund Committee SRB) in Zagreb.
The Croatian Deposit Insurance Agency hosted representatives of the Single Resolution Board and representatives of EU Member States at the Meeting of the Single Resolution Fund.
The Republic of Croatia and representatives of the CDIA regularly participate in the work of the Single Resolution Board, whose role is to ensure the proper resolution of failed banks, with minimal impact on the real economy and the public finances of the EU Member States and third countries involved. Its partners are the European Parliament, The European Commission, the European Central Bank (ECB), national resolution authorities (NRAs), and the European Banking Authority (EBA).
Appreciating this extremely important moment for the Republic of Croatia, Marko Primorac, Ph.D., Minister of Finance of the Republic of Croatia, joined the representatives of the Single Resolution Board and representatives of EU Member States at the dinner before the Meeting of the Single Resolution Fund, organized by the Croatian Deposit Insurance Agency, has emphasized that the holding of this year's first meeting in Zagreb is an additional confirmation of the benefits for the Republic of Croatia from joining the European institutions, along with the importance of quality cooperation in that area.
On the occasion of the Meeting of the Single Resolution Board, Marija Hrebac, director of the Croatian Deposit Insurance Agency, emphasized:
"The first meeting of the Single Resolution Fund held this year, precisely in Zagreb, is further/additional confirmation that we are all doing a good job together here in Croatia. I use the opportunity to thank the representatives of the SRB for their trust, but also all the employees of the Croatian Deposit Insurance Agency, as well as all our partners - the Croatian National Bank, the Ministry of Finance, the Croatian Postal Bank, and all commercial banks with which we cooperate.
Our recent experience resulted from the cooperation of all institutions (Croatian and European) during the resolution of Sberbank d.d. proved how many benefits Croatia got by joining the European banking system and the European Stability Mechanism. With a prompt reaction, we prevented panic and bank run, which, due to its ownership structure, found itself on the verge of collapse at a certain moment. After this, with the high-quality coordination of the institutions responsible for financial stability and prompt and efficient cooperation with the SRB, a decision was made to avoid all potential negative effects on the banking market of the Republic of Croatia. With the decision on the resolution of Sberbank d.d., a good credit institution was saved. Furthermore, the protection of all covered (almost HRK 4 billion) and uncovered (over HRK 4 billion) depositors were ensured, while at the same time, the National Deposit Insurance Fund was preserved. Here I would especially emphasize and praise the coordination and work of the Government of the Republic of Croatia, which enabled the purchase and sale of the failing Bank by HPB because, without such a decision, the resolution would not have been completed. For all of us, it was an excellent demonstration exercise that confirmed that the resolution of banks is a quality instrument that can be used to control and minimize all the negative impacts that the failure of any participant in the banking market can have on the rest of the market and financial stability as a whole. I am proud that we have this experience that we are happy to share with others, trying to turn all potentially dangerous cases into positive ones."
Miguel Carcano Saenz De Cenzano, Head of Unit at SRB responsible for the SRF, emphasized:
„It was a real pleasure to meet the resolution authorities in Zagreb. I thank the Croatian Deposit Insurance Agency for hosting the Fund Committee today. Cooperation with the Croatian authorities is excellent, as it is with all 21 Banking Union countries. By working together, we can build a robust Banking Union, promote financial stability and protect the taxpayer.“