Banking Crisis 1998–1999: Important Lessons
α΄΅βΏ α΅αΆ¦α΅α΅Λ’ α΅αΆ αΆΛ‘αΆ¦α΅α΅α΅α΅ α΅α΅α΅Κ³α΅α΅βΏαΆΚΈ https://climateclock.world/ The Croatian banking crisis of 1998-1999 carries a set of important lessons that are quite specific to Croatia and the broader post-Yugoslav, post-transition region. Here are the key messages: 1. Rapid Expansion Without Oversight is Dangerous When MesiΔ ran for president, he promised to recover funds lost in the 1990s banking scandals and privatization corruption schemes (roughly 1–1.5 billion USD at the time). In the 1990s, many Croatian banks grew aggressively after the war, with limited regulatory oversight. Credit was extended too easily, sometimes politically motivated, and risk management practices were poor. This reflects a broader regional problem: post-socialist states liberalized their financial sectors before institutions were strong enough to supervise them. 2. Privatization Created Weak Foundations Banks were privatized or newly established quickly, often with politically connected owners. Many lacked lo...