It is expected that the new Law on Banks and Savings Banks together with an improvement of the political situation in the region will add to a substantial new ent ry of foreign investment in Croatian banking industry. Privatisation policies do not define any special regulations regarding privatisation of banks. Banks will be privatised mostly through the privatisation of their main shareholders - enterprises. The new Law on Banks and Savings Banks emphases the principles of free entry and exit. The main goal is to increase competition and in particular to break the existing regional monopolies.
Easy entry has to have very strict rules for prudential supervision .
Banks are independent in their business activities from the State and the National Bank of Croatia. As joint stock companies their management is responsible to the shareholders. Banks may be established by only one legal or natural person, resident or non-resident. The minimum equity capital requirement is set at the countervalue of DEM 5 million in domestic currency. Banks dealing in foreign exchange need three times that amount.