ZAGREB, Dec 8 (Hina) – Croatia has one of the most stable deposit insurance systems in the European Union, the State Agency for Deposit Insurance and Bank Resolution (DAB) said on Tuesday ahead of the entry into force of the new law on deposit insurance and compulsory liquidation of credit institutions on January 1.
The new law is aligned with EU directives. It shortens the duration of bankruptcy proceedings for credit institutions and additionally protects depositors. It also provides for the further reform of the banking system in Croatia and the EU, strengthens banks’ capacity to withstand financial shocks, minimises costs borne by taxpayers in case of problems with banks, and establishes a single financial fund which will be filled by credit institutions and not private citizens.