For the first time in the history of Croatia after the World War II, the banking system – instead of generating losses at the expense of entire population has become one of the major levers of the economic and social development. The analysis includes a detailed presentation of development of credit portfolio, sources of funds, bank capitalisation, and the rate and ways of international integration throughout the decade. The effects of monetary policy on the banks have also been analysed, with special attention paid to the effects of the global financial crisis and an explanation of the way in which banks partially mitigated the overflow of its effects on the Croatian economy.