As expected, the Council of the Croatian National Bank has approved the entry of the German BLB bank by acquiring a majority stake in Hypo and Slavonska banka.
Although two months ago, the governor of the HNB, Željko Rohatinski, explicitly stated that he would not approve the entry of BLB bank into the market due to events from five years ago, when that bank exited immediately due to the crisis at Riječka banka, which was under its ownership. However, after a few days, the governor softened slightly and said that he would approve the entry of the German bank if it met several conditions. The first among them was an apology from BLB bank. After BLB bank did this, it became clearer that there were almost no obstacles to granting them entry.
Among other conditions, the HNB required the recapitalization of Hypo and Slavonska banka, with the aim of increasing capital adequacy, which should be at a level of 18.6 percent in Hypo bank over the next year, and 22 percent in Slavonska banka. The requirement also includes stronger monitoring of guidelines for preventing money laundering, the bank will further be limited in providing mortgage loans to the private sector, and there will generally be stronger control of exposure to clients. The new owner also faces the completion of the merger of Hypo and Slavonska banka. (Lidija Kiseljak)
