10/21/2024 13:54
Another successful traditional conference "Challenge of Change" organized by the Croatian Association of Pension Fund Management and Pension Insurance Companies (UMFO) and the Zagreb Stock Exchange brought together more than 570 participants from the domestic and international financial community, encouraging constructive discussions on key challenges and opportunities on the global and regional capital markets.In the introductory part of the conference, the Vice-President of the Government and Minister of Finance Marko Primorac addressed the participants via video message while Ivan Vidiš, State Secretary in the Ministry of Labour, Pension System, Family and Social Policy gave an opening speech.
Ante Žigman, President of the Board of the Croatian Financial Services Supervisory Agency, in his presentation highlighted the key challenges and opportunities for financial markets, with a special focus on the European Union and Croatia. He emphasized that the reduction of inflationary pressures and the recovery of the European economy in the first half of 2024 provide an opportunity for financial growth, but he also warned about the still high level of economic uncertainty in Europe. Žigman warned that despite the recovery, Europe is still significantly behind the United States in the capital market segment. "While the American market dominates global market capitalization, European markets continue to rely too much on bank lending," he pointed out.
Petar Vlaić, president of the Association of Pension Fund Management Companies and Pension Insurance Companies, emphasized that pension funds will operate stably and with good returns in 2024. He particularly emphasized the returns of the B category, which still contains almost 90% of the assets under the management of pension funds. By the way, the yields of the B category have been higher than the real GDP growth, which is one of the tasks of pension funds. When it comes to voluntary pension savings, Vlaić underlined that there is no alternative to it and it should be encouraged - by the state, but also by employers to start paying more significant funds for their employees. In the coming period, the funds will continue to work on raising financial literacy so that citizens can make informed decisions important for their retirement life.
It is extremely important to encourage regional cooperation of financial markets as a way of developing and improving the financial sector, emphasized Ivana Gažić, president of the Zagreb Stock Exchange. She pointed out the importance of joining the OECD and the positive impact it would have on the further development of the Croatian financial market. In conclusion, she mentioned a number of positive factors such as the entry into the Schengen area and the Euro area and raising the investment rating of the Croatian economy as an opportunity for Croatian citizens to decide to invest in financial instruments offered by the capital market.
Leading domestic and foreign experts discussed global and European trends in the capital market and fund asset management. Pelle Guldborg Hansen, chief scientist and founder of the Danish institute iNudgeyou, explained to the audience how to apply behavioral insights to improve decision-making in finance, i.e. how financial institutions and individuals can make better decisions regarding investments, savings, consumption and risk management.
Topics such as macroeconomic trends and the application of artificial intelligence in the challenges faced by pension funds were discussed at numerous panels and lectures.
The second half of the Challenge of Change conference was marked by expert discussions on whether companies are ready for capital markets, the importance and role of regional stock exchanges as financial centers and how to shape the future of the Croatian capital market.
The panel entitled 'Are companies ready for the capital market' was attended by the presidents of the boards of renowned companies - Blaž Brodnjak, NLB banka, Mario Klarić, Professio Energia and Luka Orešković, a partner in Prosperus Invest and Bosqar Invest. The panelists discussed the potential of Croatian companies to raise further funds for their growth and development through the capital market, as well as the obstacles and challenges along the way. The conclusion of the panelists is that, although the Croatian financial market is young, there are numerous successful examples of companies that have decided to raise capital through the channels and tools of the Zagreb Stock Exchange, but further education is definitely needed, as is the refinement of the legislative framework.
The expert discussion entitled 'The region as a financial hub: the role of regional stock exchanges' for the first time brought together the presidents of six regional stock exchanges - Zagreb, Ljubljana, Warsaw, Bulgaria, Macedonia and Bucharest - in one place. The panelists concluded that each stock exchange, depending on its size, has its own challenges, but mutual cooperation and integration have no alternative. It was emphasized that capital knows no borders, especially when it comes to smaller markets, and it is necessary to unite resources and standardize the rules, as well as the institutional framework, so that all members of the region can use their potential.
The end of the conference was marked by a round table entitled 'Shaping tomorrow: Strategic insights for the future of the Croatian capital market', which was attended by Davor Zoričić, State Secretary of the Ministry of Finance, Anamarija Staničić, Board Member of Croatian Financial Services Supervisory Agency, Eva Horvat, Member of the Management Board of Raiffeisen Mandatory and Voluntary Pension Funds, Tamas Nagy, President of the Association for business and intermediation in Financial Markets of the Croatian Chamber of Economy and Stjepko Čičak, Board Member at Central Depository & Clearing Company. The panelists pointed out that now we have the opportunity to be ambitious and increase the attractiveness of the Croatian capital market, and the prerequisite is to respond adequately to the challenges with the regulatory framework and reach a consensus on the common direction of development
