The Effects of Creating the European Union Bank, on the Banking System in Romania

The establishment of a mutual supervision of the banks within the European Union, entrusted to the European Central Bank, is the first stage of the banking union, desired by several countries in the attempt to prevent future crises. The purpose of this union is the supervision of the banks in Europe, identifying and correcting potential dangerous practices in their activities as well as the recapitalization of the financial system in safer conditions, the failure of insolvent financial institutions. Romania, as an EU state, joined the countries participating in the European Banking Union. As a state outside the euro zone, with a fragile banking system in front of the increasingly diverse problems of the economic crisis, Romania will not automatically assimilate the constraints posed by such a system. With the problems this implies, the adherence to this system may represent a step in the sustainable development of the national banking system