Banking Union

Banking Union refers to a framework established within the European Union to ensure a more integrated and safer banking system across member states. It aims to enhance financial stability and protect depositors by implementing common rules and regulations for banks. Key elements include a single supervisory mechanism (SSM) that centralizes bank oversight, a single resolution mechanism (SRM) to manage failing banks, and harmonized deposit insurance. This structure helps prevent financial crises by ensuring that banks operate under the same standards, promoting accountability and reducing risks for both consumers and the economy as a whole.