Central Bank Independence in Transition Economies

2D. Banking Supervision and Exchange Rate Policy 

The Bank is responsible for supervising commercial banks (Art. 40-44) and 

conducts exchange rate policy. 

3. Croatia

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The National Bank of Croatia (NBC) was established in 1992, after a dissolution 

of the Republic of Yugoslavia. The legal base for functioning of the Bank is the Law 

on the National Bank of Croatia of 1992 with latter amendments. 

3A. Governing Bodies and Financial Management 

The Bank is governed by the Board being composed of the Governor, Deputy 

Governor, Vice-Governors and at most eight other members appointed from among 

independent experts. All Board members are appointed and dismissed by the 

Parliament for six years term, the Deputy Governor and Vice-Governors are 

designated on the recommendation of the Governor. Independent experts may not be 

employee nor participate in management of the institutions controlled by the Central 

Bank (Art. 66, 72). The decisions of the Board are taken with two-third majority of the 

votes. If the Board cannot reach an agreement which is important for implementing 

Central Bank tasks, the Governor may temporarily issue a decision himself. The final 

decision on the controversial issue is taken by the Parliament (Art. 68).  

The salaries of the Board's members are determined in the Statute of the Bank, 

passed by the Board (Art. 66). The financial plan and the annual financial statement 

are formulated by the Board of the NBC and approved by the Parliament (Art. 79). 

 

 

 

                                              

3

 Source: Law on the National Bank of Croatia, National Gazette 74/92 (with latter 

amendments). 

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