APPLICATION OF NATIONAL REFERENCE INTEREST RATES IN CROATIAN BANKING

Sa？etak By accepting variable interest rate when starting a credit relationship with a credit institution, consumers also accept the risk of its change due to the changes in underlying contracted parameters, i.e. market indices. A longer repayment period with the contracted variable interest rate increases the risk of its change. Parameters defi ned as the national reference interest rate are generally better suited to situation in the Croatian fi nancial market and less dependent on trends in global markets. Still, the “entry price” of the funds that credit institution extends can not be described by just one parameter. It rather consists of a number of parameters