The European Central Bank uses monetary policy tools to guide inflation towards the 2% target. These tools affect the amount and price of loans that individuals and organizations borrow. The ECB uses tools to influence financing conditions and the level of economic activity in the euro area, which in turn affects inflation, which is the result of an energy crisis caused by disruptions in the supply chain and potentiated by the realization of geopolitical risk in the territory of Ukraine. The paper presents key economic indicators, the impact of geopolitical risk and the contractionary monetary policy of the central bank as a response to high levels of inflation. The paper will contribute to the analysis of the restrictive monetary movements of the central bank and its impact on the tightening of financincial conditions for banks and leasing companies. In the world of rising interest rates, the main variable that is taken into account is Euribor, as the reference interbank rate in the European Union. The business indicators of Raiffeisen Bank International and Raiffeisen Leasing Croatia and the effect of geopolitical risk on business operations will be taken into account and changes in the business indicators of the mentioned institutions will be concluded.