The Cypriot syndrome is not relevant for Croatia and we don't have to be afraid, which does not mean that we don't have our own economic problems or that we don't need to introduce reforms, Privredna Banka Zagreb's chief economic analyst Marko Skreb underscores in the bank's latest weekly analysis.
Skreb adds that banks in Croatia had a significantly lower ratio in GDP than in Cyprus. We aren't an off-shore financial centre and according to International Monetary Fund (IMF) data, domestic banks are highly capitalised, with one of the highest adequacy rates, over 20 per cent, he said.
The PBZ brings an extensive analysis of the Cypriot syndrome and its consequences, noting that in 2012 GDP in Cyprus amounted to EUR 18 billion (just 40% of Croatia's GDP) but that its banking system is seven times larger than its GDP. Bank assets in Croatia are about 20% greater than GDP.
