Shadow banking includes all institutions and all activities that take place outside the regulatory framework of banks. The shadow banking sector has been present on the financial market for many years, but was mentioned for the first time in 2007. Experts strated to pay special attention to shadow banking after the global financial crisis in 2008, and since then more specific research and supervision of this sector have been carried out. The regulation of shadow banking represents a challenge for states and their supervisory bodies due to the fact that shadow banking was created precisely to avoid the regulatory framework surrounding bank operations. Due to the influence on the stability of the financial market, the regulation and supervision of the shadow banking sector are necessary. In the EU, measures to regulate shadow banking began to be significantly developed and implemented after the global financial crisis in 2008, and with Croatia's entry in the EU in 2013, these measures were then applied to the domestic financial market. The main measures to regulate shadow banking in the EU include measures aimed at financial entities, measures to strengthen market integrity and additional measures that form the framework for the risks associated with shadow banking. The main supervisory bodies that regulate the financial market in Croatia include the Croatian National Bank and the Croatian Financial Services Supervisory Agency.