•  This is based on the idea of identical regulatory requirements (such as capital adequacy rules) for banks. These are achieved through European Regulations or binding standards issued by the European Banking Authority (EBA), while leaving leeway for national authorities to impose stricter requirements nationally for macroprudential reasons – e.g. in order to contain real-estate bubbles.
•  The EBA is charged with the task of harmonizing supervisory practices. It has the legal competence to develop and monitor the implementation of the Single Rule Book. The establishment of the Single Supervisory Mechanism (SSM) is the second main element of the Banking Union.