The proposed law on free accounts, which introduces a range of banking services for citizens that will not incur fees, has caused quite a stir during the public discussion. Voices from the banking sector have indicated that this measure will force them to reduce lending, and they consider the law to be an attack on entrepreneurial freedom. The proposed law is actually a continuation of the disputes between the state and banks regarding the level of fees and commissions. What are the banks’ arguments and how will the restrictions recently introduced by the Croatian National Bank affect lending? Tamara Perko, the director of the Croatian Banking Association, speaks to Lider about this and will also participate in Lider’s Financial Forum on March 9 in Zagreb.
Banks reacted strongly during the public discussion on the proposed law on free accounts for citizens, even mentioning constitutional lawsuits. Do you consider their reaction justified?
– Yes, I consider it justified. However, I must clearly state that banks are not against the accessibility of accounts and services. We just do not understand what problem the legislator is trying to solve. If it is about the issue of account services for people of lower financial status, then that has already been addressed with the basic account service, which is free. We are open to discussions if such an account needs to be expanded with additional services. If the problem is the legal obligation to pay salaries into a bank account, that can also be resolved very simply – by allowing accounts for which there would be no fees for opening, maintaining, or closing, nor for withdrawing money at the ATM of one’s own bank. This problem is, therefore, easily solvable, but not to the extent proposed by the legislator. Here we are not talking about a free account, but about a free package of services, and without clear criteria, which is a significant risk. When we talk about fees, several facts should be highlighted. A recent EY analysis on the level of the most commonly used fees in dealings with citizens showed that in Croatia they are among the lowest in Europe, and the quality and accessibility of services are exceptionally high, whether we are talking about branches, digital channels, or ATMs. Furthermore, in the latest ‘HUB Analysis’, Velimir Šonje analyzed the share of income from fees and commissions in GDP from 2016 to 2024. It was shown that it fell from 1.07 to 0.75 percent of GDP. Comparing the share of fees and commissions in total bank revenues, in Croatia it is about twenty percent, while in Europe it is around thirty percent. In light of these facts, we wonder why the proposed legislative initiative targets such a broad range of services that should be free.
