HNB: The safety of depositors of Hypo Bank in Croatia is not endangered

The change of the ultimate owner of Hypo Alpe-Adria-Bank d.d. Zagreb does not change anything by itself nor does it endanger the stability of the banking system in Croatia and that bank itself, nor the safety of its depositors and other depositors, emphasizes the Croatian National Bank.

In response to journalists’ inquiries, the central bank reported that the Croatian National Bank is in the process of events concerning Hypo Alpe-Adria-Bank International AG, as the parent bank of Hypo Alpe-Adria-Bank d.d. Zagreb, and today it was officially informed by the Austrian National Bank and the Financial Market Authority about the agreement reached whereby 100 percent of the shares of Hypo Alpe-Adria-Bank International AG are taken over by the Republic of Austria.

Hypo Alpe-Adria-Bank d.d. Zagreb is foreign-owned, but operates in Croatia as an independent legal entity subject to Croatian legal regulations. According to available indicators, the capital adequacy ratio of that bank is very high (over 20 percent, or twice the prescribed legal minimum). All business indicators do not indicate the need for any measures by the HNB towards that bank, emphasize the Croatian central bank.

They note that the change of its ultimate owner does not change anything by itself nor does it endanger the stability of the banking system in Croatia and that bank itself, nor the safety of its depositors and other depositors. The takeover of the parent Austrian bank Hypo Alpe-Adria-Bank International AG by the Austrian state, according to the HNB’s conviction, shows the seriousness of the intention to take necessary measures for recapitalization, stabilization, and a more successful continuation of the operations of that bank, which can also benefit its foreign ‘daughters’, including this one in Croatia, believe the HNB.

Therefore, the Croatian National Bank supports this decision, and for the same reasons, it has also been supported by the aforementioned Austrian institutions, which they emphasize in a letter sent to the HNB. In any case, they note from the HNB, whenever the owner of a stake greater than 10 percent of the guarantee capital in any bank operating in Croatia changes, the consent of the Croatian National Bank is required. Such consent has not been requested up to this point, but even when a request for ownership change affecting Hypo Alpe-Adria-Bank d.d., Zagreb arrives, it will be considered according to the legally prescribed procedure.

After the HNB Council makes a decision, the public will be immediately informed about it, as in any other similar case, say the HNB. They add that regardless of whether the new owner is the Austrian state or someone else, Hypo Bank in Croatia will still have to operate in accordance with Croatian legal and sub-legal regulations and under the supervision of the Croatian National Bank.  (H)