A rulebook for all financial actors in the EU

In response to the recent financial crisis, the European Commission pursued a number of initiatives to create a safer financial sector for the single market. These initiatives form a single rulebook for all financial actors in the 28 EU countries. They include

  • stronger prudential requirements for banks 
  • improved protection for depositors
  • rules for managing failing banks 

This single rulebook is the foundation for the banking union.

Deeper integration of the euro area banking system

As the financial crisis evolved into the euro area debt crisis it became clear that deeper integration of the banking system was needed for the euro area countries, which are particularly interdependent. That’s why, on the basis of the European Commission roadmap for the creation of the banking union, the EU institutions agreed to establish a single supervisory mechanism and a single resolution mechanism for banks. The banking union applies to countries in the euro area. Non-euro area countries can also join.

As a further step to a fully-fledged banking union the Commission put forward a proposal for a European deposit insurance scheme (EDIS) in 2015. This would provide stronger and more uniform insurance cover for all retail depositors in the banking union.

What is the banking union?


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