Joining the European Union, for the newer Member States necessary means entering into the European Economic and Monetary Union after filling the nominal convergence criteria and other prescribed requirements. Since the collapse of Lehman Brothers in 2008 and the emergence of the financial crisis led to discord and uncertainty of the overall banking system, both worldwide and in European Union and European Economic and Monetary Union, the establishment of banking union as part of an integrated financial framework is a response to all the economic and financial problems that are pushing incurred. The aim of this diploma work is to analyze the process of creating banking union and to determine its role in the banking sector the EU Member States, as well as dealing with the consequences of the financial crisis. Also, the aim is to describe the importance of the three mechanisms that creates banking union: a Single Supervisory Mechanism, a Single Recovery Mechanism and related funding mechanisms. Their guidelines are the main guidelines for successful operation of the economic and financial system. Furthermore, assesses the role or importance of the European Central Bank and the European stability mechanism to control banking union that is essential for the successful function of the system.