Bank credit loans in the Republic of Croatia

Financijski sustav u Republici Hrvatskoj tradicionalno je bankocentričan s dominantnim brojem komercijalnih banaka. Najznačajniju stavku u imovini banaka čine bankovni krediti. Hrvatska narodna banka provodi nadzor nad kreditnim institucijama u Republici Hrvatskoj, a Europska središnja banka je odgovorna za provedbu nadzora nad kreditnim institucijama u euro području. Loši bankovni krediti i akumuliran kreditni rizik predstavljaju prijetnju bankovnom poslovanju. Struktura kapitala banaka uvelike određuje financijski učinak banaka. Basel II i Basel III standardi postavljaju regulatorni okvir za učinkovito upravljanje kreditnim rizikom u bankarstvu. U vrijeme i nakon financijske krize došlo je do povećanja troškova rezerviranja banaka za nastale gubitke, smanjenja obujma kreditnih plasmana te pada bankovne dobiti. U Republici Hrvatskoj i dalje je prisutno nedovoljno financiranje poduzetničkih aktivnosti.The financial system in Croatia is traditionally bank oriented with dominant number of commercial banks. The most significant share in bank assets are credit loans. The Croatian national bank is obliged for the supervision of credit institutions in the Republic of Croatia and the European Central Bank is responsible for supervision of credit institutions in the euro area. Bad credit loans and accumulated credit risk pose a threat to the banking business. Capital structure of a bank determines its financial performance. Basel II and Basel III standards set out the regulatory framework for the effective management of credit risk in the banking sector. At the time and after the financial crisis, there was a significant increase in provision expenses for banks but also it resulted in reduction of banking loans and bank profits. In the Republic of Croatia there is still an insuffcicient number of credit loans approved for stimulating entrepreneurial activities