2002年-世界发展银行全球_Financial_Sector_Assessment___Croatia_10页_954kb

Financial Sector Assessment of Croatia (December 2002)

Core Content Overview

This report summarizes the findings of the Joint IMF-World Bank Financial Sector Assessment Program (FSAP) for Croatia, conducted in 2001 and finalized in 2002. It covers the macroeconomic environment, banking sector, payments system, capital markets, insurance sector, pension funds, crisis management, and the legal framework for secured transactions and insolvency.

Macroeconomic Environment

• Economic Recovery: Croatia's economy is recovering, with improved balance of payments and a resilient banking system.
• Growth and Inflation: Economic growth continues despite a worsening external environment. Inflationary pressures are subdued.
• Liquidity Management: The CNB has a framework to manage liquidity, but uncertainty in government financing operations complicates monetary control.
• Monetary Policy Instruments: There is a need to develop more instruments for monetary policy transmission and enhance secondary market development.
• Debt Management: The public debt management framework requires further strengthening to manage risks effectively and support long-term borrowing.

Banking Sector

• Structure and Performance: Croatia has made significant progress in restructuring its banking system since 1998/99. Foreign-owned banks control over 85% of the sector, while two state-owned banks remain.
• Profitability and Capital Adequacy: Banks show improved profitability and capital adequacy, with an average risk-weighted capital ratio of 18% as of end-2001. However, nonperforming loans remain high for some institutions.
• Financial Intermediation: The level of financial intermediation is low by European standards. The credit-to-GDP ratio is 40%, and there are issues with collateral recovery and credit information infrastructure.
• Risks and Supervision: Banks face risks from macroeconomic policies and exchange rate fluctuations. The CNB should enhance risk-based supervision, including stress testing and credit reporting systems.

Payments System

• Modernization Efforts: The CNB has implemented two key payment systems: RTGS for large transactions and NKS for low-value transactions.
• System Compliance: The NKS system ensures compliance with international best practices for safety and soundness.
• Legal Framework: Both systems have legal foundations in the National Payments System Law.

Capital Markets and Non-Bank Financial Institutions

• Legal Framework: The legal and regulatory framework for securities markets was established in 1995 but requires further updates. Recent amendments to the Securities Law and other relevant laws have improved clarity and CROSEC's autonomy.
• Insurance Sector: The insurance sector is small and concentrated, with the state-owned Croatia Osiguranje holding 51% of the market. The ICSA needs strengthening in supervision and risk management.
• Pension Funds: The legal framework for pension funds is sound but has areas for improvement, such as the independence of HAGENAS and the rigidity of investment regulations. Recommendations include relaxing quantitative investment limits and improving performance measurement.

Crisis Management and Deposit Insurance

• Early Warning Systems: The CNB has developed EWS and FSIs to monitor financial stability, including deposit and credit growth, nonperforming assets, and liquidity.
• Lender of Last Resort: The CNB's lender-of-last resort function is well-defined and has been used in cases like Riječka Banka. Moral hazard concerns necessitate strict adherence to rules.
• Deposit Insurance: The current deposit insurance coverage and premium are considered high by international standards. A review of the structure and pricing is recommended.
• Bank Rehabilitation: The DAB is effective in resolving bank failures, but its role may need re-evaluation as bank rehabilitation nears completion.

Legal Framework for Secured Transactions and Insolvency

• Debt Recovery: The process for recovering overdue debt and secured claims is slow and inefficient, with long delays in land registration and enforcement of movable property pledges.
• Insolvency System: The bankruptcy system is new and has shortcomings, including inexperience of judges and trustees, lack of transparency, and inefficient structures. Specialized judges are needed.
• Accounting and Auditing: Croatia has adopted IAS and ISA, but compliance is weak due to lack of expertise, demand-driven pressure, and oversight of auditors.

Recommendations

• Enhance liquidity management and coordination between the CNB and MoF.
• Develop more monetary policy instruments and improve the credit information database.
• Strengthen the ICSA and improve the legal framework for capital markets.
• Review the structure and pricing of deposit insurance and the role of DAB.
• Improve the efficiency of the legal system for debt recovery and insolvency resolution.
• Enhance the capacity and independence of the pension fund supervisor.
• Introduce simplified reporting for SMEs while maintaining compliance with EU standards.
• Strengthen supervision and oversight of auditors to ensure quality and transparency.