The new European Union framework pertaining to financial regulation, supervision and oversight is a ‘child of the crisis’—indeed, to be more precise, that of two crises: the recent (2007–2009) international financial crisis, and the current fiscal crisis in the euro area, which erupted in 2010. The new framework addresses most of the causes of these crises by introducing a set of extensive rules aimed at three primary goals: enhancement of financial stability, enhancement of market efficiency, transparency and integrity, and enhancement of consumer protection. It has also established two pan-European mechanisms for micro-prudential supervision and resolution of (at least) systemically important credit institutions and investment firms, within the framework of the European Banking Union.
Within this context, the present article focuses mainly on the new aspects of European Union banking regulation and supervision.