Capital is defined as the union of human and other material and immaterial forces equal to the cost of productive investment. The main function of capital is to cover the risks of banking and the negative effects of systemic disorders. Bank's capital guarantees depositors security of stake and long-term stability of the system. The minimum regulatory rate established by the CRR is 4.5% of ordinary share capital. In addition to the minimum rate, banks are required to maintain protective capital and countercyclical capital in order to accumulate sufficient share capital during the successful period and cover losses in the event of a crisis. European banks have continued to build a solid capital position and strengthen their balance sheets. The recapitalization efforts undertaken by European banks following the 2008 financial crisis have made the European banking sector more resilient and stronger. In 2017, the Republic of Croatia recorded an increase in the total capital rate of banks to the highest value so far of 23.8%. The regulatory capital of banks strengthened and increased in 2017 by 2.0%, driven by the retention of profit from the previous year. The share capital increased by 3.3% and the supplementary capital decreased by 13.8%. The rates of ordinary share capital, core and total capital show that the capitalization of banks in the Republic of Croatia is far above the EU average. Stress testing at the RH level leads to results that confirm the resilience of the system to the potential losses that would occur in the event of an imagined global crisis, even in the context of the existing structural vulnerabilities of the economy.