Specifics of banking in Croatia

The banking system is one of the pillars of the Croatian economy. It is stable and relatively recession-resistant. Croatian banks offer a variety of services to both individuals and companies looking to open a bank account, from different currencies for your bank accounts, credit cards, online payment services to mortgages and loans.

Banking System of Croatia

Banking is considered one of the strongest sectors of the Croatian economy, primarily due to effective regulation and relatively disciplined borrowers.

The Croatian banking sector includes twenty banks and four domestic savings banks with a predominance of foreign ownership (around 90%). Eleven foreign banks are owned by shareholders from the European Union. In addition to domestic banking institutions, almost 150 institutions from the European Union provide financial services in Croatia.

The Croatian banking system is comparable to other countries in Central and Eastern Europe. Croatia's total capital ratio is above the European Union average, making the banking system relatively stable and recession-resistant. However, interest rates are high and Croatia has a high share of foreign currency-denominated loans compared to the eurozone. The Croatian National Bank has addressed this problem by increasing deposit requirements and encouraging banks to lend in the local currency (the euro).

The Croatian National Bank (CNB) is an independent regulator established in 1990. Its main objective is to maintain price stability and the stability of the financial system as a whole through monetary and exchange rate policy, money issuance and the maintenance of national foreign exchange reserves. The CNB also regulates and supervises credit institutions, issues and revokes their licences and operates the interbank real-time gross settlement system.

The monetary policy instruments available to the CNB are market operations (repo and reverse repo auctions), intraday and overnight Lombard loans, mandatory reserve requirements (currently 12% of total liabilities), CNB bill auctions and short-term liquidity facilities.

The CNB uses daily auctions and a minimum mandatory foreign exchange requirement to manage the exchange rate. The CNB participates in the European Union's Single Euro Payments Area project (SEPA), which aims to create a single market for payment services, enabling citizens, businesses and public authorities to make non-cash payment transactions in euros under the same basic conditions, rights and obligations, regardless of their location.

CNB became an integral part of the European System of Central Banks (ESCB) on 1 July 2013, upon Croatia's accession to the European Union.

All banks in Croatia operate in accordance with the Banking Act and its provisions. The interests of the banking sector are represented by the Croatian Banking Association (HUB) and the Banking Association within the Croatian Chamber of Commerce (HGK). 

Largest banks

• Zagrebačka Banka (ZABA)

ZABA is the largest and leading bank in Croatia in terms of the quality of its services. Zagrebačka banka is owned by the Italian UniCredit group. It has over 860 ATMs and 160 branches. In Croatia, the bank serves 80,000 corporate clients and over 1.1 million private clients, which means that every fourth resident is its client.

Notable projects supported by ZABA include the Zagreb Electric Tram, Zagreb Airport, the Vatroslav Lisinski Concert Hall, the Istrian Y Highway, the Petrova Trudionika project and the Pometeno Brdo wind farm.

Their main service packages are the Starter Package, the Smart Package and the Enhanced Package, as well as the Youth Package (persons under 29). All of them include euro accounts and multicurrency accounts, but the Smart and Superior packages include benefits such as a free Mastercard credit card, roadside assistance, travel and health insurance.

• Privredna Banka

Privredna Banka is the second largest retail bank in Croatia with over 200 branches throughout the country. It has a wide network of ATMs throughout Croatia. The bank offers the following accounts and features: Visa debit and premium cards; private and corporate banking; currency exchange services; giro accounts; current accounts in euros or foreign currencies; various corporate bank account options. Over the years, Privredna Banka has supported programs in tourism, agriculture, industrialization, shipbuilding, electrification and road construction.

• Erste & Steiermärkische Bank

Also known as “Erste Bank”, this bank is part of the Erste Group, a leading company in the financial sector in Central and Eastern Europe. The bank has been operating in Croatia since 2000. It has 131 branches and 630 ATMs throughout the country, as well as access to several partner ATMs. It was the first bank in Croatia to offer debit cards with chip technology and the ability to submit online applications for loans and account openings.

Erste & Steiermärkische Bank offers the following services and options: all types of bank accounts, savings and pension products; corporate banking and advisory services; MasterCard Gold debit card; Diners Club credit card with rewards.

• OTP Banka (formerly Splitska Banka)

With assets of €7.7 billion, OTP Banka is the fourth largest bank in the country. They have over 100 branches in Croatia, but the Hungarian OTP Group operates in 11 countries. The bank supports various humanitarian projects, NGOs and institutions, encourages the development of sports, arts, healthcare, and promotes the protection of the environment and human rights.

The bank offers a number of standard services. The OTP Standard package can cover all your basic needs, while the OTP Plus package includes the services of a premium banker, professional advice and priority in the loan approval procedure. OTP also has a non-resident account. With it, you can receive payments, as well as make non-cash payments and transfers.

• Raiffeisen Banka 

Raiffeisen Banka is part of the Austrian RBA Group. It was the first bank in Croatia financed by foreign capital. Today, they have 62 branches in 36 cities across the country.

The main packages of Raiffeisen current accounts are RBA Start&Go, RBA Full&Cool and RBA Young&Free. They offer mobile and internet banking, multi-currency accounts and additional health insurance. If you have their Mastercard or Visa credit card, you can become part of their loyalty program. Every time you use your card, you earn points that can be exchanged for euros.

• Hrvatska poštanska banka (HPB)

77% of the shares of Hrvatska Poštanska Banka are owned by the Republic of Croatia. The bank has been operating for over 30 years and currently has over 580,000 clients.

HPB is a stable bank with a simple offer. If you are just looking for a regular current account, you are in the right place. You can open it as a foreigner and add a foreign account to it.

• Addiko Bank

Addiko Bank is part of the Addiko Group, an Austrian parent bank registered in Vienna. Addiko focuses on consumer lending and SMEs, with an emphasis on business development. The bank does not offer services to large corporate clients, government funding, or mortgages.

Along with traditional banks, Croatia also has a number of digital banks to choose from. These include:

• Bunq — the "freedom bank" as they often call themselves. It is a fully mobile bank with a choice of monthly plans for both private and corporate clients.
• Revolut — an app-based digital bank with several plan options, including a free standard one. They have business accounts as well as accounts for minors.
• CurrencyFair — This money transfer service is easy to use and can be used to send money to 150 countries.

Types of Bank Accounts

There are three types of bank accounts that can be opened in Croatia:

• Giro Account (for other income)
• Current Account (for salary)
• Savings Account

There are no restrictions for foreigners to open a bank account in Croatia. Your bank account can be opened in either euros or foreign currencies, or as a multi-currency bank account.

Bank fees for account maintenance vary depending on the bank and the type of account. Most banks in Croatia offer internet and mobile banking services.

Procedure for opening a bank account

Opening a bank account in Croatia is easy. You just collect all the necessary documents, go to a bank branch and apply for opening your bank account.

You need to have the following documents:

• Proof of identity - ID card, passport, driver's license or any government-issued ID.
• A residence permit - is only required if you have one, as non-residents can open a "non-resident" bank account (but you will need to obtain an OIB number, which is issued by the Ministry of Finance).
• A sum of money to deposit into your account so that it can be activated (the exact amount will depend on the bank you choose).

Once you have all the necessary documents, a bank officer will guide you through the process (most branches have English-speaking staff) - from filling out paperwork (mostly filling in your personal details) to paying a nominal amount to open the account.

Once a certain amount has been deposited, your account will be opened. You will have immediate access to your funds, but you will need to wait for your ATM card. However, you can access the account in person at the bank. Your ATM card will arrive in five to ten business days - once delivered, you can use it just like any other debit card.

In most cases, there will be a nominal monthly fee for maintaining your account, the exact amount depends on the bank you choose.

Also, some banks in Croatia allow foreigners to open a bank account online by providing documents and special forms - but this depends on the bank. So if you have a specific bank in mind, you will need to check with them directly to see if this is an option.

Keep in mind that if you are a foreign citizen and want to open a bank account in Croatia, you will have additional requirements. Some banks require tax forms or additional identification documents, but this varies from bank to bank. Because of these additional formalities, you will have to wait for bank approval before your bank account will be opened in Croatia.

Opening a Business Bank Account

If you are an investor who wants to register a company in Croatia, you must open a bank account for the minimum share capital and future financial transactions in the company.

To open a corporate bank account, in addition to the documents listed above, you must prepare company documents and details of the business owners.

You will need the following documents:

• proof of residence;
• valid identification;
• Croatian tax identification number;
• company documents.

The process is similar to opening a bank account as an individual — The bank will provide you with several forms to fill out, as well as a contract that sets out the terms of opening a bank account. You will also receive a credit card attached to the account and linked to your company.