Financial crisis, which had erupted fully in 2008, had shown that the frame for European integration had not managed to secure financial stability and that a monetary union can function only if it is supported by an integrated banking system. Many questions had arisen on the subject of organization and functionality of the financial system considering the noted shortcomings of prudential regulation in banking that had been implemented until then. The need for a change of supervision of the financial sector of the EU, especially in the Eurozone, had resulted in the founding of a Banking union as a response to the lessons learned during the financial crisis. The Banking union project had launched with the implementation of the SSM, and given that the ESB cannot act alone in the creation of a common supervisory culture, the participation of national governments is needed. These governments ought to capitalize on the opportunity presented to them by the aforementioned process of creation, and this would lead to an active contribution to the nurturing of a common supervisory culture. The nurturing and encouragement of a common supervisory culture on both sides should influence the development of that very same culture, while a centralized supervision should enable the suppression of national interests, which had been know in the past to contribute to an enchanted circle between the banks and the state. Croatia was determined on the path to join the Banking Union, which it did by entering mechanisms of close cooperation between the ECB and the CNB and by entering the ERM II exchange rate mechanism. Through these actions, Croatia is a step closer to switching to the Euro currency while also, thanks to close cooperation, it has become a member of a joint supervisory and remediation mechanism before joining the Eurozone. The creation of a joint supervisory and bank remediation system is a major step for Croatian integration, and a more transparent and consistent supervision can be expected in the future as a result.