The paper analyzes the performance of the banking system of the Republic of Croatia and selected ten banks in the period from 2005. to 2016. The analysis is based on accounting and market performance indicators. Using the secondary data available on the official website, business informations of selected banks and banking system were collected and the most significant accounting and market performance indicators were calculated. Banking performance analysis is a broader term than profitability analysis, and includes the interdependence of income, expense, financial and non-financial inputs and outputs. Analysis of the performance of selected banks and the banking system can be extended to a risk, as the second important business dimension, to get a broader picture of the cause and effect relationships of the financial operations. The performance of some bank is usually measured by accounting and market performance indicators. The accounting indicators are based on the financial statements, respectively on the accounting information's that can be read from them. All services provided by banks are reflected in their financial statements. Theoretical analysis has shown the importance of monitoring and evaluating the performance of banks to maximize the satisfaction of different interest groups. It is defined the meaning of bank's success. The comparative analysis of the performance indicators in the selected period revealed the results of operations of selected banks and banking system, as well as the causes of changes. The results of analysis shows that the success of bank's operations has changed under the influence of the world economic crisis. Already poorly business indicators got worse by deepening the crisis. Business operations of bank's and banking system stabilized as the economy emerged from the recession. The analysis showed the significant differences in bank's business operations, which proved the main hypothesis of the work. Large banks are more profitable then selected small banks. Furthermore, they have more successfully offset the effects of the financial crisis. The Croatian banking system is a relatively small system with a small capital market role. Since the beginning of the global economic crisis, the domestic banking system has been characterized by accelerated consolidation. By reducing the share of bad placements, the profitability of banking system also increased.