Croatian National Bank

The Croatian National Bank (CNB), or Hrvatska narodna banka, is the central bank of the Republic of Croatia. It is an independent public institution that is accountable to the Croatian Parliament and is responsible for monetary and financial stability within Croatia. Since Croatia adopted the euro on 1 January 2023, the CNB has operated as part of the Eurosystem alongside the European Central Bank and the other national central banks of euro-area countries. Its role changed substantially with euro adoption: before 2023 it issued and managed Croatia's national currency, first the Croatian dinar and then the Croatian kuna; since euro adoption it participates in the common monetary policy of the euro area and performs national central-bank functions within the Eurosystem framework. The institution's origins date to 1971, when the National Bank of Croatia was created as part of Yugoslavia's decentralized system of national banks. During Croatia's transition to independence, the Constitution adopted on 21 December 1990 recognized the National Bank as Croatia's central bank and established its responsibility for currency stability and the liquidity of domestic and international payments. Croatian legislation in December 1991 formally established the institution in the new state, with the arrangement later confirmed by legislation in November 1992. The bank was renamed the Croatian National Bank in 1997. The CNB's primary objective is maintaining price stability. Its responsibilities also include contributing to the stability of the financial system, managing Croatia's international reserves, implementing monetary-policy decisions, and overseeing payment-system liquidity. Before euro adoption, the bank issued the Croatian dinar from 1991 to 1994 and the Croatian kuna from 1994 to 2022. After the changeover to the euro, currency issuance became a Eurosystem function, while the CNB continued to carry out national responsibilities and participate in euro-area monetary operations. The CNB is also a major financial-sector regulator. It authorizes and supervises credit institutions, credit unions, payment institutions, electronic-money institutions, and authorized exchange offices. Since 2020 it has served as Croatia's national competent authority within European Banking Supervision and participates in the Single Supervisory Mechanism. It is a voting member of the European Banking Authority's Board of Supervisors, Croatia's designated national resolution authority, and a member of the plenary structure of the Single Resolution Board. It also participates in the European Systemic Risk Board and provides Croatia's permanent common representative in the supervisory composition of the European Anti-Money Laundering Authority. The bank's independence is expressed through functional, institutional, personal, and financial safeguards. It determines the instruments used to carry out its mandate without direction from political authorities, while remaining accountable through reporting obligations to Parliament. Its central Zagreb headquarters occupies a building designed by architect Viktor Kovačić and completed in 1927 for the Zagreb Stock and Commodity Exchange. The CNB also organizes the Dubrovnik Economic Conference, an annual economic-policy forum first held in 1995. Through its monetary, supervisory, resolution, and analytical activities, the institution links Croatia's domestic financial system with the wider European central-banking and regulatory architecture.

The Croatian National Bank developed from the National Bank of Croatia, which was created in 1971 within Yugoslavia's decentralized system of national banks. In that arrangement, republic-level banks operated alongside the National Bank of Yugoslavia, which served as the federation's collective monetary authority. The Croatian institution therefore initially functioned as a subsidiary rather than as the fully sovereign central bank of an independent state. Croatia's constitutional transition created the legal basis for a national central bank. Article 53 of the Croatian Constitution, adopted by Parliament on 21 December 1990, identified the National Bank as the central bank of the Republic of Croatia. The constitutional provision assigned it responsibility for currency stability and the liquidity of payments inside and outside the country, stated that it would operate independently, and made it accountable to the Croatian Parliament. A government regulation of 23 December 1991 established the bank under Croatian law during the independence period. This provisional arrangement was subsequently confirmed through legislation enacted in November 1992. The bank became responsible for Croatia's monetary arrangements during the establishment of an independent financial system. It issued the Croatian dinar from 1991 until 1994, after which the Croatian kuna became the national currency. During the 1990s the Croatian banking sector underwent restructuring, while the CNB developed the supervisory and monetary institutions required by an independent state. The bank organized the first Dubrovnik Economic Conference in June 1995, creating an annual forum for economic research and policy discussion. In 1997, constitutional amendments changed the institution's official name from National Bank of Croatia to Croatian National Bank. That year it also became a full member of the Bank for International Settlements. The early 2000s included a significant governance episode. In July 2000, all members of the CNB Council led by Governor Marko Škreb resigned after Parliament refused to accept the bank's report for 1998 and the first half of 1999. The episode illustrated the tension between the bank's statutory independence and its accountability to Parliament. Boris Vujčić joined the institution in 1996 as head of its Research Department, became deputy governor in 2000, and became governor in 2012. As Croatia moved toward European Union and euro-area integration, the CNB's functions increasingly became connected to European regulatory structures. The bank became Croatia's national competent authority in European Banking Supervision in 2020. It also assumed or participated in European arrangements concerning banking resolution, systemic-risk monitoring, anti-money-laundering supervision, and the European Banking Authority. On 1 January 2023 Croatia adopted the euro. This ended the CNB's role as issuer and independent manager of the kuna, but did not end its central-bank responsibilities. The CNB became part of the Eurosystem and now contributes to the common monetary policy of the euro area while continuing to supervise Croatian financial institutions, manage national responsibilities connected with reserves and payments, monitor financial stability, and report to the Croatian Parliament. Its headquarters remain in central Zagreb in a building designed by Viktor Kovačić for the Zagreb Stock and Commodity Exchange and inaugurated in 1927. The Croatian National Bank emerged from the constitutional and institutional changes that accompanied Croatia's independence. The Croatian Constitution adopted in December 1990 defined the Croatian National Bank as the central bank of the Republic of Croatia. The institution assumed responsibility for monetary affairs as Croatia established its own state, financial, and payments framework in the early 1990s. Its initial period was marked by the creation of a national currency system, the management of foreign-exchange conditions, and the development of central-bank institutions in a newly independent economy. The kuna became Croatia's currency in 1994, replacing the Croatian dinar. HNB then operated a national monetary regime in which exchange-rate stability was a central policy objective. Croatia's substantial trade, tourism, banking, and financial links with the euro area made the exchange rate particularly important for households, businesses, and banks. HNB used monetary and foreign-exchange instruments, reserve management, liquidity operations, and regulatory measures to support price and financial stability while the economy developed toward closer European integration. During the 1990s and 2000s, HNB's responsibilities expanded beyond currency management. It served as the country's monetary authority, managed official reserves, acted as banker to the government, supported the payment system, produced economic statistics and analysis, and participated in banking supervision. The governor's office and the bank's governing bodies became important institutions in the regulation of Croatia's increasingly bank-centered financial system. Željko Rohatinski led the bank from 2000 to 2012, followed by Boris Vujčić, who took office in 2012. Croatia joined the European Union in 2013. EU membership brought HNB into the institutional framework of the European System of Central Banks and required increasing alignment of Croatian monetary, banking, payment, and financial-stability arrangements with European law. The bank continued to set and implement national monetary policy while preparing for the possibility of eventual euro adoption. That preparation included legal convergence, institutional changes, public information, technical planning for cash conversion, and participation in European assessments of Croatia's economic and financial conditions. A major step occurred in July 2020, when Croatia joined ERM II. The kuna's central rate against the euro was established within the mechanism, and HNB worked with the ECB and other European institutions on maintaining exchange-rate stability and satisfying the conditions for later entry into the euro area. The process also involved commitments concerning financial supervision, public finances, governance, and economic policy. The ECB's comprehensive assessment of Croatian banks formed part of the broader preparation for closer Eurosystem integration. The Council of the European Union approved Croatia's euro adoption in 2022, and the euro replaced the kuna on 1 January 2023. HNB consequently became a national central bank of the Eurosystem. The ECB now determines the single monetary policy for the euro area, while HNB contributes to Eurosystem decision-making through the relevant European central-bank structures and implements monetary operations in Croatia. HNB also retains national functions, including supervision and financial-stability responsibilities under the applicable banking and macroprudential framework, oversight of payment systems, reserve and statistical functions, and public education and services connected with currency circulation. The euro changeover also created a multi-year role for HNB in the exchange of legacy kuna cash. Kuna banknotes can be exchanged through HNB without a time limit under the applicable arrangements, while the exchange period for kuna coins ended after the legally specified transition period. More broadly, the changeover transformed HNB from a national currency issuer and independent national monetary-policy authority into a Eurosystem institution responsible for implementing euro-area policy in Croatia. Its present identity rests on that dual role: it is a Croatian public institution with national supervisory, analytical, statistical, and payment responsibilities, and at the same time an integral participant in the ECB-led monetary system. As Croatia moved toward European Union and euro-area integration, the CNB's functions increasingly became connected to European regulatory structures. Croatia joined the European Union in 2013, which brought the CNB into the institutional framework of the European System of Central Banks and required increasing alignment of Croatian monetary, banking, payment, and financial-stability arrangements with European law. The bank became Croatia's national competent authority in European Banking Supervision in 2020. It also assumed or participated in European arrangements concerning banking resolution, systemic-risk monitoring, anti-money-laundering supervision, and the European Banking Authority. On 1 January 2023 Croatia adopted the euro. This ended the CNB's role as issuer and independent manager of the kuna, but did not end its central-bank responsibilities. The CNB became part of the Eurosystem and now contributes to the common monetary policy of the euro area while continuing to supervise Croatian financial institutions, manage national responsibilities connected with reserves and payments, monitor financial stability, and report to the Croatian Parliament. The changeover also created a multi-year role for the CNB in the exchange of legacy kuna cash: kuna banknotes can be exchanged through the CNB without a time limit under the applicable arrangements, while the exchange period for kuna coins ended after the legally specified transition period. Its headquarters remain in central Zagreb in a building designed by Viktor Kovačić for the Zagreb Stock and Commodity Exchange and inaugurated in 1927.

• 2023

  Croatia adopts the euro

  [1]Croatian National Banken.wikipedia.org

  The CNB joined the Eurosystem as Croatia replaced the kuna with the euro.

• 2023

  HNB becomes part of the Eurosystem

  [5]European Central Bank: Croatia and the euroecb.europa.eu

  Croatia adopted the euro on 1 January 2023, and HNB became a Eurosystem national central bank.

• 2020

  Entry into European Banking Supervision

  [1]Croatian National Banken.wikipedia.org

  The CNB became Croatia's national competent authority within European Banking Supervision.

• 2020

  Croatia enters ERM II

  [6]Council of the European Union: Bulgaria and Croatia join ERM IIconsilium.europa.eu

  Croatia joined the Exchange Rate Mechanism II, with HNB participating in the exchange-rate and convergence process preceding euro adoption.

• 2013

  Croatia joins the European Union

  [9]Croatia joins the European Unionecb.europa.eu

  Croatia's EU accession deepened HNB's integration with the European System of Central Banks and initiated the later institutional path toward euro adoption.

• 2012

  Boris Vujčić becomes governor

  [1]Croatian National Banken.wikipedia.org

  Boris Vujčić assumed the governorship after earlier serving as research head and deputy governor.

• 2000

  CNB Council resignations

  [1]Croatian National Banken.wikipedia.org

  Governor Marko Škreb and the other Council members resigned after Parliament rejected a CNB report.

• 1997

  Institution renamed Croatian National Bank

  [1]Croatian National Banken.wikipedia.org

  Constitutional amendments changed the official name from National Bank of Croatia to Croatian National Bank.

• 1997

  Full membership of the Bank for International Settlements

  [1]Croatian National Banken.wikipedia.org

  The CNB became a full member of the Bank for International Settlements.

• 1995

  First Dubrovnik Economic Conference

  [1]Croatian National Banken.wikipedia.org

  The CNB launched its annual Dubrovnik Economic Conference.

• 1994

  Kuna becomes Croatia's currency

  [1]Croatian National Banken.wikipedia.org

  The CNB began issuing and managing the Croatian kuna after the Croatian dinar period.

• 1994

  Kuna introduced

  [8]Kuna introducedhnb.hr

  The kuna replaced the Croatian dinar as Croatia's currency, becoming the currency managed and issued within HNB's national monetary framework.

• 1992

  Founding framework confirmed by legislation

  [1]Croatian National Banken.wikipedia.org

  Legislation enacted in November 1992 made the bank's institutional establishment permanent.

• 1992

  First post-independence governor begins term

  [1]Croatian National Banken.wikipedia.org

  Antun Šokčević served as the first governor listed in the modern institutional history of HNB after Croatia established its independent monetary authorities.

• 1991

  National bank established under Croatian law

  [1]Croatian National Banken.wikipedia.org

  A government regulation of 23 December 1991 established the bank during Croatia's independence transition.

• 1990

  Constitutional recognition as Croatia's central bank

  [1]Croatian National Banken.wikipedia.org

  Croatia's Constitution assigned the National Bank responsibility for currency stability and payment liquidity and affirmed its independence and accountability to Parliament.

• 1990

  Central-bank status established

  [2]Croatian National Bank: About ushnb.hr

  The Croatian Constitution established the Croatian National Bank as the central bank of the Republic of Croatia.

• 1971

  National Bank of Croatia established

  [1]Croatian National Banken.wikipedia.org

  The institution was created within Yugoslavia's decentralized system of republic-level national banks.

An independent national central bank serving as Croatia's monetary authority, banking supervisor, financial-stability institution, and national interface with the Eurosystem and European financial-supervision bodies. A public monetary authority and Eurosystem member rather than a commercial banking brand. HNB combines national central-bank functions with responsibilities delegated or coordinated through the European Central Bank and the Eurosystem.

• Central banking · 1990

  Monetary-policy operations

  The CNB contributes to the maintenance of price stability and, since euro adoption, implements the common monetary policy of the Eurosystem in Croatia. Its work includes liquidity management, monetary analysis, and participation in euro-area central-bank operations. Before euro adoption, HNB conducted Croatia's national monetary policy and managed the kuna monetary framework, with exchange-rate and price stability among its principal objectives. Before euro adoption, HNB conducted Croatia's national monetary policy and managed the kuna monetary framework, with exchange-rate and price stability among its principal objectives. Since 2023, it implements the ECB's single monetary policy in Croatia through Eurosystem instruments and operations.

• Currency management · 1991

  Croatian currency issuance

  Before euro adoption, the CNB issued and managed Croatia's national currencies: the Croatian dinar from 1991 to 1994 and the Croatian kuna from 1994 until the end of 2022. Since 2023, currency functions are performed within the Eurosystem and the CNB supports euro cash operations in Croatia.

• Financial supervision

  Banking supervision

  The CNB authorizes and supervises credit institutions and credit unions and serves as Croatia's national competent authority within European Banking Supervision. Its supervisory role covers the resilience, governance, and regulatory compliance of the Croatian banking sector. Depending on the institution and function, its work is coordinated with the ECB's Single Supervisory Mechanism and includes prudential oversight, regulatory implementation, monitoring, and contributions to supervisory decisions. HNB carries out banking-supervision responsibilities within the European banking-supervisory framework. Depending on the institution and function, its work is coordinated with the ECB's Single Supervisory Mechanism and includes prudential oversight, regulatory implementation, monitoring, and contributions to supervisory decisions.

• Payments regulation

  Payment and electronic-money supervision

  The bank authorizes and oversees payment institutions and electronic-money institutions, and contributes to the safety and liquidity of Croatia's payment infrastructure. It also authorizes exchange offices operating under Croatian law. Its responsibilities include regulatory, analytical, and operational work connected with payment infrastructure and the country's integration into European payment arrangements.

• Financial stability

  Financial-stability and macroprudential oversight

  The CNB monitors threats to the financial system as a whole, uses market intelligence and supervisory information to identify vulnerabilities, and works with other public institutions on measures intended to preserve monetary and financial stability. It uses or coordinates macroprudential measures under Croatian and European rules, covering banking-system resilience, credit and liquidity conditions, structural vulnerabilities, and cooperation with domestic and European supervisory authorities.

• Reserve management

  International-reserve management

  Managing the international reserves of the Republic of Croatia is a core central-bank function. The activity supports the country's external liquidity and forms part of the CNB's broader monetary and financial-stability mandate. Prior to euro adoption, these activities supported the kuna exchange-rate regime; after adoption, they form part of Croatia's participation in the Eurosystem reserve framework.

• Financial stability

  Financial stability and macroprudential policy

  HNB monitors systemic risks affecting Croatia's financial system and uses or coordinates macroprudential measures under Croatian and European rules. The function covers banking-system resilience, credit and liquidity conditions, structural vulnerabilities, and cooperation with domestic and European supervisory authorities.

• Reserve management · 1990

  Official reserves and foreign-exchange operations

  HNB manages official foreign assets and performs reserve-related operations in accordance with Croatian law and Eurosystem requirements. Prior to euro adoption, these activities supported the kuna exchange-rate regime; after adoption, they form part of Croatia's participation in the Eurosystem reserve framework.

• Currency services · 2023

  Currency and cash services

  HNB supports the circulation, quality, security, and information framework for euro cash in Croatia. It also administers the exchange of remaining Croatian kuna cash under the post-changeover rules, including the continuing exchange of kuna banknotes at HNB.

• Financial infrastructure

  Payment-system oversight

  HNB oversees and supports the safety and efficiency of payment systems and related arrangements in Croatia. Its responsibilities include regulatory, analytical, and operational work connected with payment infrastructure and the country's integration into European payment arrangements.

• Statistics and research

  Economic and financial statistics

  The bank publishes monetary, financial, external-sector, banking, and other economic statistics, together with research and analysis used by public authorities, financial institutions, researchers, and the public.

• 2022Euro changeover information campaign

  Croatia

  HNB participated in public information and operational preparations for Croatia's transition from the kuna to the euro. Communications addressed conversion, dual display of prices, cash exchange, counterfeit awareness, and practical issues for households, businesses, and financial institutions.

  Outcome. Croatia adopted the euro on 1 January 2023 and HNB became part of the Eurosystem.

  Source
• 1995Dubrovnik Economic Conference

  Croatia · International economic-policy community

  The CNB established an annual economic conference in Dubrovnik to provide a forum for discussion of monetary policy, financial markets, and broader economic issues. The event continued annually, including in 2020 despite the COVID-19 pandemic.

  Outcome. Became a continuing annual economic-policy forum.

  Source

• 2023

  Transition from the kuna to the euroStrategy

  Background

  Croatia joined the euro area on 1 January 2023 after using the kuna as its national currency. The European Union approved Croatia's entry into the euro area after the country completed the required legal and economic convergence process.

  Action taken

  The CNB joined the Eurosystem and ended its role as issuer and independent manager of the kuna. On 1 January 2023, the euro became Croatia's currency and HNB joined the Eurosystem, replacing its former national monetary-policy role with implementation of the ECB's single monetary policy in Croatia.

  Aftermath

  The CNB now participates in common euro-area monetary policy while retaining national supervisory, payment, reserve, and financial-stability responsibilities. HNB retained national responsibilities in supervision, financial stability, payment systems, statistics, reserves, and cash services, including the exchange of legacy kuna banknotes.

  Source

• 2020

  Integration into European Banking SupervisionStrategy

  Background

  Croatia's financial-supervision framework was increasingly aligned with European Union institutions.

  Action taken

  The CNB became Croatia's national competent authority within European Banking Supervision.

  Aftermath

  The bank gained a formal role in the Single Supervisory Mechanism and continued participating in European banking-regulatory bodies.

  Source

• 2020

  Entry into Exchange Rate Mechanism IIStrategy

  Background

  Croatia's euro-adoption strategy required participation in ERM II and progress toward the EU convergence criteria.

  Action taken

  Croatia entered ERM II with HNB participating in the exchange-rate and institutional arrangements alongside European authorities.

  Aftermath

  ERM II participation became a major formal stage in the process that led to Croatia's euro adoption in 2023.

  Source

• 1997

  Renaming as the Croatian National BankStrategy

  Background

  Constitutional amendments revised the institution's formal name as Croatia consolidated its independent state institutions.

  Action taken

  The official name was changed from National Bank of Croatia to Croatian National Bank.

  Aftermath

  The CNB continued as Croatia's central bank and later became integrated into European central-banking structures.

  Source

• 1994

  Introduction of the Croatian kunaOther

  Background

  Croatia required a national currency and monetary framework during the consolidation of its independent state institutions.

  Action taken

  The kuna replaced the Croatian dinar as the currency issued and managed within HNB's national monetary system.

  Aftermath

  The kuna remained Croatia's currency until the euro changeover on 1 January 2023.

  Source

• 2023

  Croatia adopts the euro and joins the Eurosystem[1]Croatian National Banken.wikipedia.org

  Other · Product generation

  Croatia adopted the euro on 1 January 2023, and the Croatian National Bank became part of the Eurosystem. The change transferred responsibility for single monetary policy to the ECB while HNB continued implementing Eurosystem functions and carrying out national responsibilities.

• 2022

  Croatia completes euro adoption process[7]Council of the European Union: Croatia and the euroconsilium.europa.eu

  Other

  The Council of the European Union approved Croatia's adoption of the euro after convergence assessments and the completion of the legal process. HNB and other Croatian institutions prepared the cash changeover and the transition of central-bank operations.

• 2020

  Croatian National Bank becomes part of European Banking Supervision[1]Croatian National Banken.wikipedia.org

  Regulation

  The CNB became Croatia's national competent authority within European Banking Supervision and took part in the European supervisory framework.

• 2020

  Croatia joins Exchange Rate Mechanism II[6]Council of the European Union: Bulgaria and Croatia join ERM IIconsilium.europa.eu

  Other

  Croatia entered ERM II, an important formal step in the process that preceded euro adoption. HNB participated with the Croatian government, the ECB, and other European authorities in the preparation of the exchange-rate and institutional framework.

• 2000

  Resignation of the CNB Council after parliamentary rejection of its report[1]Croatian National Banken.wikipedia.org

  Leadership change · Other

  Members of the CNB Council led by Governor Marko Škreb resigned in July 2000 after the Croatian Parliament rejected the bank's report covering 1998 and the first half of 1999.

• 1995

  Croatian National Bank organizes the first Dubrovnik Economic Conference[1]Croatian National Banken.wikipedia.org

  Campaign

  The CNB launched the Dubrovnik Economic Conference, an annual forum for discussion of economic and monetary policy that continued through the COVID-19 pandemic.

1. 1Croatian National Banken.wikipedia.org
2. 2Croatian National Bank: About ushnb.hr
3. 3Croatian National Bank: Managementhnb.hr
4. 4Croatian National Bank: Eurohnb.hr
5. 5European Central Bank: Croatia and the euroecb.europa.eu
6. 6Council of the European Union: Bulgaria and Croatia join ERM IIconsilium.europa.eu
7. 7Council of the European Union: Croatia and the euroconsilium.europa.eu
8. 8Kuna introducedhnb.hr
9. 9Croatia joins the European Unionecb.europa.eu