The global financial crisis (GFC) in 2007/2008 started with the U.S. sub-prime mortgage crisis in 2007, turned into the Eurozone crisis in 2010 which showed the fragility of the banking system. The European Council decided to create a banking union to centralise supervision and resolution for banks in the euro area in order to avoid new crises in the euro zone and rebuild investor confidence in the banking sector. In general, the banking union should ensure stability and transparency of the financial system and support EU economy.
The Banking Union is based on three pillars: the Single Supervisory Mechanism (SSM), the Single Resolution Mechanism (SRM) and Deposit Guarantee Schemes (DGS). Continua la lettura di Pocket Glossary of the Banking Union (in 4 languages)