BANKING POTENTIALS, BUSINESS UNION OF BANKS AND DEVELOPMENT OF CROATIAN ECONOMY

The author investigates influences of globalization processes of enlargement of banks of foreign proprietary origin and international significance on a small transitional market of Croatia. Comprehensions that the paper brings can be abridged in following lines. First, globalization processes transformed banking system of Croatia from predominantly state to the system of foreign proprietary groups with a high level of concentration without bigger share or significance of central bank. Second, legal solutions were favourable for enlargement of banks and integration processes. Third, motifs and interests of foreign proprietary oligarchies in Croatia are directed to enlargement of profit and taking possession of better positions just before market integration of Europe. Fourth, the size and availability, and especially the price of crediting Croatian firms had no adequate quality in regard to development necessities of transitional economy of Croatia.