This paper aims to define the impact of education on the development of skills and performance of employees in banking concering commercial banks in the Republic of Croatia. Organizations, as well as banks, need to increase the level of employee productivity and efficiency to maximize their results. Every modern management should develop the organization through the development of human resources because they are today considered the main strategic factor for creating a sustainable and competitive advantage. Employee education is an important system as well as a specialized function for human resource management. The modern banking system is very dynamic and challenging. Technological advancement has made banking more customer-oriented. In this context, there is a need for continuous improvement of the skills and knowledge of banking sector employees. Banks need to improve employee performance by implementing specific, specialized, appropriate, and well-organized training programs. Banks should focus on the best education and their application in learning different types of knowledge and skills, giving clear instructions for all activities, and providing education for a reasonable duration. The paper uses qualitative research methods - qualitative secondary research based on the available relevant literature. This paper aims to show the importance of employee education and its role in increasing employee performance, describe how to conduct training in the banking sector and evaluation methods, highlight the effectiveness of training and ultimately present the analysis of training in Croatian commercial banks and its impact on performance, knowledge, and developing employee skills. The result of this paper shows that there is a significant positive relationship between educational programs of commercial banks on the development of skills and performance of employees in general as well as specifically in the Croatian banking sector.