The European Banking Union: integrating supervisory approaches

This chapter discusses the different facets of European integration, culminating in the European Banking Union (EBU). One of the most important events in European integration was the creation of a single currency (labeled the Euro) that replaced national currencies. The global financial crisis stimulated European Union countries to integrate their regulatory and supervisory frameworks further. The chapter notes that the creation of the EBU is a historical event. In a few years, the European banking supervision and resolution mechanism moved from a decentralized system at the domestic country level to a centralized approach at the European level.