FINANCIAL SUPERVISION IN CROATIA BETWEEN TWO INSTITUTIONS AND ONE EUROPEAN TREND

One of the most significant developments in financial regulation during the last two decades was the transition from sectoral supervision to integrated supervision. This is done by adopting a “single supervisor” model in which the oversight of all financial sectors falls under the competencies of a single authority. Indeed, if we look at the institutional changes in financial supervision in many European countries during this period, we can conclude that the trend of institutional consolidation has been very influential. However, the recent financial crisis has questioned the effectiveness of the single supervisor model. As a result countries around the world are (re)considering their regulatory and supervisory arrangements. Surprisingly, in Croatia the debate on this issue has been almost completely dismissed by academics, experts and policymakers. But as a future EU Member State Croatia’s regulatory arrangements will have to be fully aligned with European trends, and this means that its model of financial supervision needs to be (re)examined.