The link between financial development and economic growth has long been the subject of economist thinking. The financial system performs an essential economic function of routing funds from those who save to those who are consumers. The financial sector performs six most important tasks at the level of the economy as a whole and at the enterprise level. Financial systems need to be developed in a balanced way, both through banking and non-banking subsectors. These financial tasks are realized primarily through financial institutions that, along with financial instruments and financial markets, are the three most important elements of the financial system. Developing and other specialized banking organizations around the world are dealing with certain banking requirements, and aim to finance projects with high external effects under more favorable conditions, which will contribute to greater involvement of many economic entities in their realization and realization of faster development of the country. The work of the Croatian financial system is supervised and regulated by the Croatian National Bank. The financial system of the Republic of Croatia is bank-oriented, and the Republic of Croatia has no developed financial market. The Croatian financial system is stable and it is slowly recovering from the previous crises thanks to the CNB, which maintains its operations in international financial markets. Numerous contributions in the literature suggest that the stability of the financial system promotes economic growth, but we do not find the exact evidence that supports this claim. That is why further research is needed in the future.