engleski

Consolidated supervision of financial institutions and financial market in the Republic of Croatia

Financial sector is a driving force of growth and development in the country’ s economy. In the same way as the efficiency of the national economy can be fostered by the development of financial mechanism, it can be also threatened by possible financial crisis and instabilities. Therefore, a question of regulation and supervision of all parts of financial system are of major importance for any country. In order to protect the interest of the society and to accelerate the economy development it is necessary to provide adequate legal framework as well as independent supervision institutions. The regulations refer mostly to maintenance of financial stability and consumer protection. The structure of the financial sector in the Republic of Croatia is underdeveloped and characterized by domination of the banking sector. Bank supervision is one of the main tasks of Croatian national bank and all other financial institutions (except banks) are regulated by other regulatory institutions. The problems of authority overlapping and insufficient regulation are becoming more complex by the development of financial sector and especially by the deregulation of financial markets. Because of that, it seems reasonable to investigatethe existing regulatory framework of Croatian financial system concerning its structure and development. A comparative analysis will be carried out by presenting a models of consolidated supervision of financial institutions and marketss for several European countries. The aim of this paper is to determine if the introducing of an integrated financial supervision in the Republic of Croatia is justified. The authors conclude that there are measures to ensure a stable and more efficient financial system.

financial system; financial institutions; financial market; supervision

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