Under the Draft Decision, Effective 1 October 2026, Banks Would Face Reduced Quotas for Loans That Exceed Prescribed Criteria in Croatia

Croatia's central bank has opened a public consultation on a draft decision that would tighten consumer lending rules from October, reducing the amount of lending banks can approve outside existing debt and collateral limits. The Croatian National Bank (HNB) proposed changes that would lower quotas for loans exceeding the maximum debt-service-to-income (DSTI) ratio, which caps monthly repayments relative to a consumer's income, and the maximum loan-to-value (LTV) ratio, which limits the loan amount relative to the collateral property's value. Under the draft decision, effective 1 October 2026, banks would face reduced quotas for loans that exceed prescribed criteria.

The rules would also clarify which loans count toward these quotas, with calculations still based on the previous quarter but explicitly including only loans not excluded from the decision's scope. From 1 October, a bank could grant in any quarter no more than the following proportions of corresponding loans from the previous quarter: 10%, down from 20%, of housing consumer loans with a DSTI ratio above 45%; 5%, down from 10%, of non-housing consumer loans with a DSTI ratio above 40%; and 10%, down from 20%, of loans secured by real estate with an LTV ratio above 90%. The underlying DSTI and LTV limits remain unchanged, as does the requirement that at least 75% of housing loans and real-estate-backed loans granted under exemption quotas go to consumers using the loan to resolve housing needs.

The HNB introduced consumer lending limits on 1 July 2025 as a preventive macroprudential measure to address easing lending standards and limit risks from the growing share of higher-risk loans in new bank lending. The public consultation is open until September, with the HNB inviting interested parties to submit comments and proposals.