The European Banking Authority (EBA) is a regulatory agency of the European Union established to ensure effective and consistent banking regulation across its member states. It aims to maintain financial stability and protect depositors by overseeing the banking sector, conducting stress tests, and developing regulatory standards. The EBA also promotes transparency and harmonization in banking practices, helping to create a single market for financial services. By providing guidelines and recommendations, the EBA supports national authorities in implementing EU banking laws and enhances cooperation among them to address cross-border banking issues.