Deleveraging is the consequence of over-indebtedness. In the current crisis, the problem of deleveraging is primarily tied to the banks, particularly those which, prior to the crisis, strongly increased their financial leverage by using other sources other than deposits to finance credit growth. These banks largely mediated flows of international capital between the Old and New Europe prior to the outbreak of the crisis. The foreign liabilities of daughter banks in the countries of New Europe grew quickly, and after the outbreak of the crisis, concern arose that the banks would start the opposite process – the process of deleveraging to limit the supply of loans and recovery on the markets of developing European nations, including Croatia. This analysis investigates whether there is foundation for this concern, with a special focus on the situation in Croatia. The analysis shows that the issue of bank deleveraging is not a problem, and that it did not play a particularly important role in this crisis in Croatia.