Bilateral Activities with the Croatian National Bank on the Resolution of Credit Institutions Successfully Implemented
The Central Bank of Montenegro (CBCG) and the Croatian National Bank (CNB) successfully completed bilateral activities in the area of resolution of credit institutions within the IPA regional project “Programme for Strengthening the Central Bank Capacities in the Western Balkans with a view to the Integration to the European System of Central Banks - Phase II”.
As a part of this activity, three bilateral visits were carried out. During the first expert mission in Podgorica in March 2023, the CNB experts presented its organisation of the resolution function and the role of Croatia in the Single Resolution Mechanism, as one of the pillars of the Banking Union. The content of resolution plans was analysed with particular reference to the preferred resolution strategy. The specific elements of assessing resolution possibilities for the needs of resolution planning, changes in calculating the minimum requirement for regulatory capital and qualified liabilities with calculation examples were discussed.
During the second expert visit from 24 to 26 May 2023, the CNB representatives presented the experiences of the Croatian monetary institution through a concrete resolution case study, analysed results and lessons learned. They explained all the instruments of this procedure, including the main characteristics, procedures of the internal resolution procedure, and regulatory framework for assessing the possibility of resolution.
During the third and final visit from 3-5 October 2023 in Zagreb, the CBCG representatives had the opportunity to exchange information with representatives of two Croatian commercial banks who shared their experiences on developing the resolution framework from the credit institutions' perspective. The resolution financial arrangements, with particular reference to the role of the Single Resolution Fund, the role and obligations of national resolution funds, and issues related to the liquidation procedure of credit institutions were in the focus of this visit.
Cooperation with the CNB, as a member of the European System of Central Banks (ESCB), is of exceptional institutional importance for the CBCG in improving work and internal processes and further harmonising the regulatory and operational framework with EU central banking standards in the area of resolution of credit institutions.