Analysis

ECB to test Croatian banks ahead of eurozone membership

The European Central Bank (ECB) will test five Croatian banks, Zagrebačka Banka, Privredna Banka Zagreb, Erste & Steiermärkische Bank, OTP Banka Hrvatska and Hrvatska Poštanska Banka as part of the country’s preparations to join the eurozone.

The test will be a preliminary step towards eurozone membership, and comes after Croatia expressed its willingness to join the eurozone. The results are expected by 2020.

In June, Croatia submitted a letter of intent to enter the European Exchange Rate Mechanism (ERM II), an early stage on the path to membership of the euro currency.