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Macrofinancial Stability in Croatia in the Wake of the Global Crisis: Risks and Policy Responses


  • Sándor Gardó

    () (Oesterreichische Nationalbank, Foreign Research Division)


After a long-lasting boom period, the global crisis put the resilience of Croatia’s economic and financial system to a severe test. The country has mastered this test so far. To some extent, the crisis also altered the country’s macrofinancial risk profile, although – against the backdrop of a high (and increasing) degree of currency substitution – credit risk continues to represent the main challenge to financial stability, in particular as bank clients’ rising debt-servicing problems started to translate into deteriorating credit quality. However, the banking sector’s shock-absorbing capacity – as indicated by still relatively high profitability and capitalization levels – the strategically-oriented presence of foreign banks and vigilant central bank measures were key in cushioning the spillovers of the global crisis and in alleviating vulnerabilities.

Suggested Citation

  • Sándor Gardó, 2010. "Macrofinancial Stability in Croatia in the Wake of the Global Crisis: Risks and Policy Responses," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 6-37.
  • Handle: RePEc:onb:oenbfi:y:2010:i:3:b:3

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    References listed on IDEAS

    1. Sandra Dvorsky & Thomas Scheiber & Helmut Stix, 2009. "CESEE Households amid the Financial Crisis: Euro Survey Shows Darkened Economic Sentiment and Changes in Savings Behavior," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 71-83.
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    More about this item


    Financial stability; banking sector; financial crisis;

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G2 - Financial Economics - - Financial Institutions and Services
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P2 - Economic Systems - - Socialist Systems and Transition Economies


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