Numerous businesses in the world give more and more attention to the ethics of business. It most comes to the fore talking about the contractions of businesses. The reason lies in the fact that the negative movements inside the economic sphere are the result of bad business decisions of individuals. Since all the businesses are under the influence of economic contractions, the banking sector does not make an exception. Thus, the aim of this thesis is to define and analyze the resulting changes in the banking area which were boosted with the purpose to stop the additional deteriorating of the already shaken banking sector. The mentioned circumstances influenced the process of creating the fundaments for the development of ethical banks which have foreseen the existing defects and the need to change the politics of banking operations. They are “maintainable, social, alternative, developing and solidary”, and their activity is directed to the improvement of the society, the environment and the community. Although the popularity of ethical banks under the banking sector is in constant increase, the public is still not quite familiarized with such type of operating. The data show that this type of banks has much better success in doing business than the universal banks, while the extent of operating and the type of clients which such banks have are often not being taken into consideration. The existing risks of such a concept are that the resources in their possession are still insufficient to enable them having an influence on the behavior of investors and on the financial market in total. So they can be defined as a sort of reaction to the operating of the classical banking sector. The development of ethical bank in Croatia is already in process for a couple of years, and its opening is continually being delayed. As such, theoretically it would have an extreme significance to the development of economy in Croatia, which would encourage the economic growth from its lowest levels. Will such banks live up to the future ascent or they will have an infamous collapse, and are they able to raise from the already established and well-known banking system are the questions that still remain to be answered?