Croatia is part of European countries with a distinct bank – centric system, so monetary policy and fiscal policy are the most important for normal functioning of the country. The impact of monetary policy on the banking system is through the creation and withdrawal of primary money through bank loans, the purchase of securities and foreign exchange, and through changes in the amount of reserve requirements and the structure of bank’s reserves. Interest rate movements in the interbank market are the result of changes in the monetary, financial, and economics system, so the effects of the crisis and the exchange rate can be observed through the amount of the interbank interest rate. In addition to monetary policy, the central bank acts on banks with prudential policy. As a protection against systemic risk, the Croatian National Bank imposes on banks the obligation to apply various measures of macroprudential regulation, such as the countercyclical capital protection buffer and the structural systemic risk protection buffer. For banks to remain solvent, they need to have enough capital to cover unexpected losses. However, the amount of capital required depends on the riskiness of the bank's assets, which would mean that less safeguarding capital is allocated to safer assets due to the lower risk weight and vice versa.