In this paper, we have written about bank rehabilitation, but before that we conceptually define and explain bank crisis and breakdowns that lead to bank rehabilitation. This work consists 8 units; first is introduction, then the part about causes and description of bank crisis and breakdowns, then there is a part about oportunities of bank rehabilitation, then we have mentioned instruments of bank rehabilitation, after that there is a part about conceptual definition of choice between rehabilitation and liquidation, then we have mentioned effects and costs of rehabilitation, after that we have described in more detail situation and bank rehabilitation in Croatia, in the end we have given conclusion about this paper. Purpose of this work is to show generally bank rehabilitation, including causes, effects and costs of bank rehabilitation. Banking system is one of the most dynamic segments of whole economic system, characterized by taking over different type of risk. In that kind of surroundings it is logical that there is a chance of getting bad performance and crisis of individual banks, parts or whole banking system in individual national economics. Bank rehabilitation includes reorganization of bank with difficulties in business, mostly by establishing new financial relations - important changes financial situation of bank