European banking refers to the financial institutions and systems operating within the European Union and European Economic Area. It includes a variety of banks, such as commercial banks, investment banks, and cooperative banks, which provide services like savings accounts, loans, and investment opportunities to individuals and businesses. The European Central Bank (ECB) plays a crucial role in regulating the banking sector, ensuring monetary stability, and overseeing the euro currency. Additionally, the Single Supervisory Mechanism (SSM) helps maintain the safety and soundness of banks across member states, promoting a stable financial environment in Europe.