Nowadays, the importance of banks is growing. The reason for this is the growing framework of jobs they perform for their clients. The risks that banks face are numerous and ubiquitous. Quality and precise risk management is an essential quality for a bank because it avoids unwanted and unexpected losses arising from job insecurity. Capital, as one of the most important forms of risk protection, provides security to the bank by absorbing the incurred losses. In order for banks to operate freely and safely, capital must be preserved at a certain level. Capital requirements are set by the Basel Accords. They set a minimum capital adequacy ratio of 8% of risk-weighted assets. In addition to the Basel Accords, capital requirements are determined by the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD). The Directive also prescribes additional or protective layers of capital that banks must keep: a protective layer for the preservation of capital, countercyclical capital, a protective layer for systemic risks and a protective layer for global or other systemically important institutions. Croatian banks are highly capitalized and have a high level of liquidity coverage and moderate exposure to systemic risk. In order to ensure capital requirements above the minimum level, supervision of institutions is carried out by the Croatian National Bank, which may impose sanctions in the event of non-compliance.