Corporate governance is defined as a set of relationships between managers, management, supervisory board, shareholders and all the stakeholders, and the main task is to ensure the strategic guidance of the bank, effective supervision and corporate social responsibility. This is particularly important in the banking sector due to its importance for the overall economy. A good corporate governance system is the basic postulate of sustainable economic growth and increase in economic system efficiency. Ownership concentration is a significant internal mechanism of corporate governance because it greatly defines the relationship between owner and manager. There are two types of ownership concentration: low ownership concentration and very high ownership concentration. Banks are different in the amount of their assets, customers, willingness to take risks, the number of branches and subsidiaries, and they can not be expected to organize and manage the risks in a unique way. The primary responsibility for the management of the bank and for its structure and organization, setting goals and business strategy and risk policy, distribution of authorities and responsibilities, the establishment of appropriate reporting lines and internal control functions, shall be borne by the management and supervisory board. Bank management should define the procedures and documents relating to separation of duties and prevention of conflicts of interest. Also, should approve and review the strategies and policies for taking, management and monitoring of risks, including risks arising from the macroeconomic environment and the business cycle. This work aims to give a full presentation of the paragraph in corporate governance in Croatian banks.