Financial globalization represented by the international flows of private capital became a reality in transition economies of Central and Eastern Europe during the past decade and a half. Taking the comparative perspective with other transition economies, in this paper we focus on changes in the financial sector in Croatia that happened as a result of the entry of the main forms of foreign capital during 1996-2006. We pay special attention to transformations including banks, pension and open-end investment funds, and insurance and leasing markets. What we see as the main challenge for future development of financial sector in Croatia is creating and putting in place proper prudential regulation and legal system to insure the stability of financial markets.

Ekonomija