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2 clusters · 4 sources · 3 days · First seen · Last updated
Banking and interest rate concerns in Croatia and Bosnia
Overview
In Croatia, concerns have emerged regarding the influence of the Croatian National Bank (HNB) and commercial banks on rising living and housing costs. Critics suggest that monetary policy and credit expansion following the country’s entry into the eurozone may have fueled inflationary pressures. Specifically, reducing the mandatory reserve requirement from 9 percent to 1 percent reportedly freed up over five billion euros, which may have stimulated demand in real estate and other sectors through increased lending.
In Bosnia and Herzegovina, economist Igor Gavran has criticized the practice of using the European Euribor as a reference interest rate for domestic loans. Gavran argues that because many commercial banks lend using funds sourced from domestic deposits rather than the Eurozone market, tying rates to Euribor artificially maintains high borrowing costs. He contends this allows banks to achieve record profits and suggests they should instead use the domestic reference rate published by the Central Bank of Bosnia and Herzegovina.
Entities
Igor Gavran · Croatian National Bank · Austrian Supreme Court · Consumer Protection Association · Central Bank of Bosnia and Herzegovina
Timeline
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[BUSINESS] 2 sourcesBosnian banks criticized for using Euribor on domestic loans
Economist Igor Gavran criticizes Bosnian banks for using the European Euribor rate to price loans funded by domestic savings, arguing it artificially inflates borrowing costs for citizens.
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[BUSINESS] 2 sourcesCroatia: Questions raised over HNB and bank roles in rising living costs
Critics in Croatia are questioning the responsibility of the Croatian National Bank and commercial banks for rising living costs and real estate prices following the country's adoption of the euro.
Sources
031portal.hr · 6yka.com · kroativ.at · srpskainfo.com