Opinion of the European Central Bank of 4 August 2017 on a draft decision on the monetary policy implementation of Hrvatska narodna banka (CON/2017/30)
Date: 2017-08-04
Institutions: European Central Bank
Subjects: Croatia, institutional activity, monetary policy, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 4 August 2017  

on a draft decision on the monetary policy implementation of Hrvatska narodna banka 

(CON/2017/30) 

Introduction and legal basis 

On  11  July  2017  the  European  Central  Bank  (ECB)  received  a  request  from  Hrvatska  narodna  banka 

(HNB)  for  an  opinion  on  a  draft  Decision  on  monetary  policy  implementation  of  the  Hrvatska  narodna 

banka (hereinafter the ‘draft decision’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and Article 2(2) of Council Decision 98/415/EC1, as the draft decision 

comprises draft legislative provisions on the instruments of monetary policy in a Member State which has 

not  adopted the euro. In accordance  with the first sentence of Article 17.5 of the Rules of Procedure of 

the European Central Bank, the Governing Council has adopted this opinion. 

1.  

Purpose of the draft decision 

1.1  The  draft  decision  lays  down  HNB’s  monetary  policy  operations  and  instruments  and  the  related 

obligations of HNB’s counterparties. The purpose of the draft decision is to: (a) recast in a single 

act  the  national  legislation  on  monetary  policy  operations;  (b)  introduce  a  pooling  collateral 

management  system  for  all  of  HNB’s  credit  operations;  and  (c)  introduce  discretionary  measures 

that HNB is authorised to take regarding eligibility and the obligations of HNB’s counterparties. 

1.2  The draft decision sets out, in particular: 

(a)   an overview of the operations and instruments of HNB’s monetary policy and rules for their 

implementation2; 

(b) 

the conditions for participation in monetary policy operations, including eligible counterparties 

(banks  and  savings  banks  with  head  offices  in  the  Republic  of  Croatia,  branches  of  credit 

institutions  of  other  Member  States  whose  establishment  has  been  notified  to  HNB  by  the 

competent  authorities  and  branches  of  third  country  credit  institutions  that  have  been 

authorised by HNB), eligible assets, eligible securities, valuation and risk control and HNB’s 
eligible assets pooling system for collateralisation of HNB’s credit operations3;  

(c) 

the discretionary measures which HNB is authorised to take on the grounds of prudence, risk 

protection  and  in  the  case  of  breach  by  a  counterparty  of  its  obligations  arising  from 

1 

2 
3 

Council  Decision  98/415/EC  of  29 June  1998  on  the  consultation  of  the  European  Central  Bank  by  national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
See Articles 1 to 19 of the draft decision. 

See Articles 20 to 34 of the draft decision. 

 
 
 
 
                                                 
ECB-PUBLIC 

transactions conducted on the basis of the draft decision, together with the consequences in 

the case of a breach of obligations and the expiry of the validity of a bank’s authorisation by 
HNB4;  

(d) 

additional  rules  for  conducting  the  monetary  policy  operations  of  HNB,  including  reporting 
obligations and the protection of confidential data5.  

2. 

General observations 

2.1  The ECB has no comments on the draft decision. 

2.2  As a Member State whose currency is not the euro Croatia and, in turn, HNB retain their powers in 
the field of monetary policy according to national law6 until such time as the relevant derogation is 

lifted and Croatia adopts the euro. 

This opinion will be published on the ECB’s website.  

Done at Frankfurt am Main, 4 August 2017. 

[signed] 

The President of the ECB 

Mario DRAGHI 

4 
5 
6 

See Articles 35 to 40 of draft decision. 

See Articles 41 to 45 of draft decision. 
Article  282(4)  of  the  Treaty  and  Article  42.2  of  the  Statute  of  the  European  System  of  Central  Banks  and  of  the 
European Central Bank. 

2