ZAGREB, July 16 Croatia's central bank on Wednesday ordered the liquidation of a small private bank, saying it had more liabilities than assets and had failed to meet supervisory requirements.
"The central bank board has decided to propose opening bankruptcy proceedings for Nava Banka," the central bank said in a statement after a board meeting.
The decision was taken after determining the bank had failed on three counts, it said.
"Its assets were lower than its liabilities, it did not meet the supervisory measures ordered by the central bank and it has long been failing to meet capital requirements," the statement said.
Zagreb-based Nava Banka is one of the smallest in Croatia, a former Yugoslav republic of 4.4 million people that joined the European Union in July last year.
Its assets accounted for 0.08 percent of the banking sector's total assets, the Jutarnji List daily said on its website.
More than 90 percent of banks in Croatia are owned by foreign parents, mostly from Austria and Italy. Four of its banks, the local units of Unicredit, Intesa, Raiffeisen and Erste, are included in the banking stress tests conducted across the European Union. (Reporting by Zoran Radosavljevic; Editing by James Dalgleish)