Credit institutions in Republic of Croatia are being regulated by the Credit Institution Law, which divides credit institutions into banks, saving banks and housing savings bank. In the year 2016 there were 31 credit institutions that were operating on the market, of which 26 were banks and 5 were housing savings bank. Considering the ownership structure of these banks it is visible that most of the banks are from foreigners. Their business is prescribed by the Law, then by the Regulations from the European Union, and all the other documents that could be given by the Croatian National Bank. Bank lending can be for business entities or for households depending on the structure and size of the bank. A loan agreement is written when a bank is considering to accept the loan request, everything from the beginning and terms of seeking the loan to the ending of the agreement where both sides need to agree is described in it. Credit process is described and divided into six parts, it has a goal of collecting the most information that is possible about the seeker of the loan in order to defend the bank from risks, especially the credit risk. Instruments that are used to limit the credit risks are written in the Program of risk management which is written by the bank itself. It includes internal regulations for the risk management or even the establishment of limits that cannot be crossed when dealing with one subject. A client who did not pass the credit capability test will not be given the loan. Quality of bank loaning is shown by the sector and currency analysis. When looking at total loans from 2008 to the end of year 2017, we can see that they have gone through one growth cycle. Total loans have grown until the year 2011, and after that started to fall. With that in mind it is possible to expect another recovery in total loan growth. General-purpose cash loans by the household sector grew by 2,2 bn HRK in comparison to the previous year, it means that the households are starting to borrow again, they will be for sure followed by the non-financial corporations. In comparison to the previous year, the agriculture, forestry and fishing has had a growth of nearly 300 mil HRK. The economy will recover from the great losses it has made over a period of time.