LEGAL ASPECTS OF THE EUROPEAN BANKING UNION FORMATION

Abstract

Introduction. The article is devoted to the development of banking regulation in the European Union, which subsequently led to the creation in 2012 of the European Banking Union as part of the Economic and Monetary Union. This process took place in three main areas – improving the mechanisms of banking supervision, crisis management and protection of depositors. The article explores and defines the main milestones and problems of the legal regulation of the EU banking sector, which were particularly clearly manifested during the global financial and economic crisis of 2008. Materials and methods. The author made a theoretical and empirical analysis of the main sources of international and European law, the studies of domestic and foreign scholars, analytical documents and reports of the EU institutions and bodies. The methodological basis of the research consists of general scientific methods (analysis, synthesis, systemic analysis) and special methods (the comparative legal method, formal legal method). Research results. Cross-border markets form a single space, giving the members certain benefits and opportunities for development. However, they also contribute to the distribution of risks among all participants, accumulate damage and contribute to the rapid spread of the crisis. That is why a consistent and comprehensive supranational regulation is required for safe and stable highly integrated markets. The embodiment of this approach was the creation of the European Banking Union. Discussion and conclusions. EU banking regulation has passed a long and thorny path of evolution from minimal harmonization to the adoption of regulations on certain issues. The global financial and economic crisis of 2008 became an impetus to the revision of the formed approaches to state intervention in banking sector, “too big to fail” concept, methods of crisis management, protection of the depositor’s rights. As a result there has been developed a comprehensive legal and regulatory framework for the banking sector in the EU, which has become a legal basis of the European Banking Union.