Banking union – the way to the stronger financial system

The aim of this article is to describe the banking union and its importance for the EU, its pillars, and principles on which it is based, its goal and contribution to the stronger financial system in Europe. We focus especially on the supervision system in the EU and possibilities of financing and managing crisis situations in the European financial system. The banking union joined with CRD IV brings tools and way of crisis avoiding, of better banking monitoring and of market events prediction. The European Commission did not finish its work only with prevention and supervision. The EC brings a complex system for crisis scenario management, clear rules and procedures for bank saving in all member states. It limits in the future the unlimited government support for banks via bailout tools that caused big crashes and uncertainty to the financial system.