Around 90 percent of Croatia's banks are owned by parents from other European Union countries, notably Italy, Austria and Hungary.
The level of non-performing loans to companies fell at the end of last year to 22.3 percent from 28.3 percent a year before, while soured loans to households declined to 8.1 percent of the total from 10.3 percent at end-2016.
Construction firms have the highest level of non-performing loans.
Croatian banks had a total 245.9 billion kuna ($40.22 billion) of loans outstanding at the end of 2017, down from 261.2 billion kuna a year earlier. More than half, or 146.7 billion kuna, were denominated in the euro currency.
The level of non-performing loans in Croatia peaked at 17.34 percent in mid-2015 following six consecutive years of recession years for the youngest EU member between 2009 and 2014.