European banking regulations

European banking regulations are rules designed to ensure banks operate safely, soundly, and fairly. They set standards for managing risks, protecting customer deposits, and maintaining financial stability across the euro area. Key regulations include capital requirements (banks must hold enough money to absorb losses), liquidity rules (ensuring banks have enough short-term funds), and oversight by regulators like the European Central Bank. These rules aim to prevent bank failures, promote trust, and safeguard the economy, especially during financial crises, by ensuring banks are resilient, transparent, and accountable.