Banking union in Europe

Outline the progress already made towards creating a banking union in Europe. What are the remaining challenges?
Answer in no more than 1500 words (excluding references, tables and appendices)
Advice and Guidance
In providing your answers to your chosen question, you are expected to demonstrate understanding of the following intended learning outcomes:

  1. Explain key banking concepts, such as liquidity and solvency, and their interrelationship by analyzing a bank’s balance sheet and income statements in the context of imperfect information.
  2. Explain the importance and limitations of prudential regulation in preventing banking crises, including capital requirements and the Basle Accords (Basel I, II and Ill).
  3. Understand the key differences between micro-prudential and macro-prudential regulation and the concept of systemic risk.