The European Banking Union is a framework established to ensure the stability and safety of banks within the European Union. It aims to create a more integrated banking system by centralizing supervision and resolution processes, reducing the risk of bank failures and protecting depositors. The Banking Union consists of three main components: the Single Supervisory Mechanism (SSM), which oversees major banks; the Single Resolution Mechanism (SRM), which manages the resolution of failing banks; and the European Deposit Insurance Scheme (EDIS), designed to protect depositors across member states.