Croatian economy is especially prone to international shocks. Dramatic spread of coronavirus, followed by drastic fall in supply&demand chains badly affected Croatian economy, which did not even have enough time to recover fully from the 2008 financial crisis and the 2017 Agrocor crisis.
The establishment of the banking union in the Eurozone means that banks are operating in a single regulatory environment, which is important especially in the case of cross-border banking groups. However, the banking union still lacks the planned third pillar, that is, a common deposit guarantee...
The process of reforming systemically important banks hasn't been completed yet. The independence and credibility of the regulatory and supervisory bodies will be of crucial importance in the effort to reduce the systemic risk and moral hazard generated by such banks.
Digitalization remains a challenge for traditional banks and few of them are able to achieve success that translates into financial profits. Meanwhile, an entire class of digitally-native entities has entered the market.
Due to the introduction of the bank tax in Romania a big sell-off of shares of Romanian banks occurred in late 2018 and early 2019. There was also some controversy regarding not only the taxation of banks in itself, but also the structure of the new tax burden.