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Croatian Central Bank Puts Four Lenders on Watch, Closes One

Croatian central bank is watching the capitalization levels of four small banks, after it closed a fifth for inadequate capitalization.

Karlovacka Banka d.d. (KABARA), Vaba d.d. (BPBARA), Nava Banka d.d. (NVBARA) and Imex Banka d.d. are being “closely watched” as they are “near” the capitalization limit of 12 percent, the central bank said today in an e-mailed statement.

The central bank yesterday withdrew the operating license for Split-based Credo Banka d.d. for falling below the limit.

“The four small banks are stable and their situation cannot be compared” with the situation in the Credo bank, the central bank said. “However, maintaining the minimal capitalization rate is especially important for small banks and their bordering the rate is a signal for caution.”

More than 90 percent of the country’s banking assets are owned by foreign lenders.

To contact the reporter responsible for the story: Jasmina Kuzmanovic in Zagreb at jkuzmanovic@bloomberg.net

To contact the editor responsible for the story: James M. Gomez at jagomez@bloomberg.net

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