The role of banks in financial market is seen as participation in intermediary activities and the use of financial instruments to make a profit and to protect against future business risks. Banking risks that banks are faced with, such as credit risk, liquidity risk, interest rate and currency risk are important to be researched because they affect the profitability of banks and future operations and first part of this paper analyzes how banks manage mentioned banking risks. Furthermore, loans with currency clauses in Croatia are of great importance and therefore the impact of credit expansion and the onset of the financial crisis in 2008 and the role of the CNB through the measures adopted have been investigated. The case of the "Swiss franc" was specifically analyzed due to the impact of loans with currency clauses on the operations of banks and the change in personal consumption of credit indebted citizens. The second part of the paper examines the foreign exchange currency market in which banks use derivatives for the purpose of hedging risks in their operations, and these hedging risks are related to the interest rate movements and exchange rate values. By using currency, interest rate and forward contracts, banks have sought to reduce future business risk and to reduce credit risk to the lowest possible level. In the foreign exchange market, financial institutions trade on a daily basis using agreements between the two parties that enable better market conditions. Speculations in OTC markets during the credit expansion and the global crisis in 2008 was certainly possible between banks in Croatia and parent banks abroad, and the global derivatives market was analyzed to find opportunities for banks to make extra profits in foreign exchange markets in future.