Naslov
Macroeconomic Conditions and the Banking Reform in Croatia

Autori
Jovančević, Radmila

Izvornik
Most (1120-7388) 10 (2000), 3-4; 325-345

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, ostalo

Ključne riječi
banking reform in Croatia; structure of the banking; spreads

Sažetak
This paper analyzes macroeconomic policies and banking reform in Croatia. The author analyzes the general macroeconomic indicators of the Croatian economy, and proves that in 1999 gross domestic product was only 83% of those levels we had before 1990, while in 2000 the level of industrial production amounted to 66% of the level in 1990. Within these general macroeconomic performance of the Croatian economy, the work of the author focuses on the development of banking institutions: in particular discussed the reform of the National Bank (with regard to transactions in 1999, transferred to the CNB) and the structure of the domestic banking. It finds that until 1997, the number of banks increased, and since then leads to their reduction, while strengthening the participation of foreign banks. Of particular interest is the author's analysis of the range between lending and deposit rates, which banks pay on deposits, under which banks lend to the economy and citizens. Although there is a tendency to reduce the difference (spreads) yet it is still very large. The crisis of banks, which occurred 1997-9 led to a reduction of citizens' savings, demonstrating the author, and it is necessary to re-establish confidence in the banking system and savings. She points out that people hold as much as 93% of their savings in foreign currency deposits, and the restoration of confidence in the banking system is necessary. Even then, the author finds that the arrival of foreign banks has not led to increased competitiveness and efficiency of the banking system. It recommended "a shift in economic policy - primarily to increased exports and domestic savings.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA