The main objective of the Croatian monetary policy is the price stability. Without prejudice of the main objective, the Croatian National Bank actively and independently conducts monetary policy and contributes to the stability of the financial system as a whole. Considering the above, it is recognized the importance of a stable movement of monetary variables with the intend of preventing the shocks expansion to the real sector of the economy. The stability of the banking system is achieved by using active measures and instruments of monetary policy. The use of the instruments that are part of active monetary policy was influenced by changes in the economic and monetary environment in Croatia. An additional challenge to the stability of the banking system are the circumstances in the financial markets and the economy in terms of the global crisis as well as the integration in the European banking system. In the above context, it is analyzed the Croatian banking system, it’s stability and the possibility of conducting an active monetary policy. The focus of the work will be on the problems and risks of the banking system as well as possibilities of monetary policy. The purpose is to establish the objectives of the monetary policy in keeping the stability as also possibilities of active implementation of monetary policy in the framework of the objectives and according to the characteristics of the Croatian economy. Stability of the banking system will be analyzed by using secondary data sources and deductive method of research. The survey is implemented through comparing past experiences and inherited problems with the situation and opportunities after European Union accession. Also, will be analyzed and the possibilities for further development and successful implementation of monetary policy within the Eurosystem. Finally, it will be reached a conclusion of the study and specify assumption for the further development on the basis of the analysis.