The goal of this thesis is to analyze the appereance of ethical banking as a new form of service delivery, as well as presenting an importatnt role of ethical banks, with special emphasis on the development of ethical banking in Croatia and the foundation of croatian first ethical bank. . Unlike traditional banks, ethical banks, with the exception of profit making as a secondary objective, are focused on the social and environmental acceptability of projects they finance as well as on sustainable economic growth and development while enjoying the growing public interest. Ethical banks customers accept their business principles and are perceived by them as a more moral and less speculative financial institution. Presented economic indicators of profitability, ROA and ROE clearly demonstrate the resilience of ethical banks and even more successful operations in the years of the last global financial crisis, with the need to keep in mind that the share of business as well as their share in the overall banking sector is still considerably smaller compared to traditional banks. The development of the first croatian ethical bank, Ebanka, has been ongoing for several years and the public interest is still not diminished, although the foundation of ethical bank is postponed due to non-compliance with regulatory requirements and regulations.