"Financial literacy is extremely important because each of us, in one way or another, comes into contact with financial decisions in life. The greater the understanding of financial concepts, the easier it is to make better decisions about borrowing and investing, which is beneficial not only for the individual and the household, but also for the entire economy because it reduces the likelihood of financial instability," emphasised the Governor of the Croatian National Bank, Boris Vujčić, in his opening speech at the 3rd Regional Financial Literacy Conference entitled "Financial IQ: Smart Finance as a Response to Contemporary Problems" held on 21 March 2025, organised by the Faculty of Economics and Business in Zagreb and Raiffeisen Mirovinski Fondovi.

The Governor of the CNB said that households in Croatia traditionally own significant assets in the form of residential real estate, while financial assets are smaller than the EU average, but similar to those in Central and Eastern European countries. In Croatia, household financial assets are concentrated in bank deposits, and the ratio of household financial assets to GDP is significantly lower than the EU average.

Despite the growth of financial assets, Governor Vujčić expressed concern about the increasing tendency of citizens to make risky investments in cryptocurrencies, which is a common practice in Croatia and Slovenia, but may also indicate a lack of financial knowledge and responsible behaviour in financial management.

Speaking on lending conditions in Croatia, Vujčić emphasised that interest rates in Croatia generally follow the euro area average and are lower than interest rates in countries that have not adopted the euro. "Croatia also stands out for having the lowest interest rates for consumer loans in Europe. Housing loans have significantly increased household lending, but borrowers are facing high debt service-to-income. More than 50 percent of households have a monthly debt service-to-income (DSTI) of more than 30 percent, while 30 percent of households have a DSTI above 40 percent, which can create significant pressure on households in the event of a recession. Although the number of new housing loans has dropped, the average amount of these loans has increased from EUR 75,000 to EUR 110,000 in the last three years. The share of housing loans with an increased debt service burden has also grown, and more than 50 percent of households have a DSTI above 40 percent," said the Governor of the CNB, adding that, although household indebtedness in Croatia is lower compared to the EU average, the emphasis is on the high growth of cash loans, the average amount of which has grown in the last three years from EUR 7,500 to EUR 8,500.

According to Vujčić, all of the aforementioned is precisely why the CNB adopted a Decision on lending criteria that will enter into force on 1 July 2025. In accordance with this Decision, the maximum ratio of monthly total debt-service-to-income will be 45% for housing loans and 40% for non-housing loans, and the ratio of the amount of the housing loan to the value of the property will be limited to 90%. Also, the maturity of housing and non-housing loans will be limited to 30 years for housing loans, and 10 years for non-housing loans.

In addition to Governor Vujčić, introductory lectures were given by Marko Primorac, Deputy Prime Minister and Minister of Finance, and Ante Žigman, President of the Board of HANFA (Croatian Financial Services Supervisory Agency), while the conference programme was opened by Sanja Sever Mališ, Dean of the Faculty of Economics and Business in Zagreb, Gordan Šumanović, President of the Board of Raiffeisen Mirovinski Fondovi, and Dajana Barbić, member of the conference organising committee. Three panels were held during the conference, covering the topics of global economic trends, financial literacy, and sustainable consumption.