European Banking Union Strengthens Oversight, Harmonizes Rules Across Countries
During the Global Financial Crisis in 2008, the European Union realized its banking rules were too scattered. To fix this, they created the European Banking Authority to make consistent rules for all EU countries. In 2012, they formed the Single Supervisory Mechanism to better supervise banks in the Eurozone. This means the European Central Bank now oversees Eurozone banks with help from national authorities. This change aims to improve how banks are regulated and supervised in the Eurozone.