The Croatian National Bank has begun to publish selected data on loan quality in a new table SP8 Loan quality, which will be released on a quarterly basis within the tables of indicators of credit institution operations.

Specifically, as of 30 June 2019, the breakdown of loan quality under the national methodology is no longer monitored for supervisory purposes; what is used instead is the European Banking Authority (EBA) methodology, which is common for the entire European Union. The changed methodology is based on data from the system of financial reporting by credit institutions (Financial Reporting Framework, FINREP).

Table SP8 Loan quality contains the series of data on the quality of credit exposure as of 30 June 2016, when credit institutions in the Republic of Croatia became obliged to submit unconsolidated reports under FINREP.

The new table will replace tables SP3 Loan quality by sectors and SP4 Loan quality by currencies, containing quarterly data series as of 2008 and 2010, respectively. Data shown in the tables were based on the methodology for monitoring loan quality based on the classification of exposures into risk categories. Due to substantive and terminological changes, there is limited comparability between data in the new table and previously published data.

As regards table SP8 Loan quality, strong efforts were made to maintain the scope of data published in table SP3 Loan quality by sectors, with FINREP reports being used as the source of data. Exceptionally, due to less detailed breakdowns of household loans under FINREP, when compared with the reporting records submitted by banks under the Decision on statistical and supervisory reporting, reporting records have remained the source of data on the quality of selected household loans, while the data compilation rules have been aligned as much as possible with the FINREP rules.

Table SP4 Loan quality by currencies will no longer be updated as the breakdown of exposures by currencies is not provided in FINREP.

All the terms used in table SP8 have been aligned with those in FINREP reports. The key substantive changes are the widened scope of loans to include deposits and advances, the inclusion of data on non-residents in the relevant sectors, and the reporting of amounts with accrued interest.

Data in the table are broken down into the following four categories:

1. Loans
2. Non-performing loans
3. Accumulated impairment of non-performing loans
4. Ratio of non-performing loans to total loans

Each data category is broken down into sectors, selected activities within the non-financial corporations sector and selected types of household loans:

1. Central banks
2. General governments
3. Credit institutions
4. Other financial corporations
5. Non-financial corporations
   • Of which: Agriculture, forestry and fishing
   • Of which: Manufacturing
   • Of which: Construction
   • Of which: Wholesale and retail trade
   • Of which: Accommodation and food service activities
   • Of which: Real estate activities
   • Of which: Professional, scientific and technical activities
6. Households
   • Of which: Housing loans
   • Of which: Generalpurpose cash loans
   • Of which: Overdrafts

Explanations of specific changes in table SP8 relative to table SP3 are provided below.