The topic of this study is Capital Reserves to Cove bankig Risks. Capital is essential and significant factor required for the stability and security of the banking sector. Among all existing economic phenomena, capital is one of the few that encompasses such a terminological and content value. Therefore, each bank must hold wnough capital to reduce the depositor's risk and to meet the needs of its present and future clients. The bank capital is responsible for the full range of functions enabling the bank to operate efficiently. This study emphasizes the analysis of the satisafciton of capital requrements of Croatian banks, compared with the banking sector in the EU. The general aim of the analysis is to investigate whether the protection layers of risk capital increases under the influence of risk. In this paper the results of the research are presented grafhically, together with the results of panel data analysis. Empirical reaserch revaled a statistically significant but negative impact of the net cost of risk on the capital buffer, which means that riskier banks reduce their capital, i.e. the higher the net cost of risk, the more it impacts the reducation of the buffers.