Regulation 2020/1/EU

Regulation
Regulation 2020/1/EU places all European Union banks under the supervision of the European Central Bank and the European Commission. Prior to the creation of the Regulation only the 130 largest banks were under European supervision. This was done to prevent an escalation of a crisis at one non-supervised bank into a European wide banking crisis. By having them under joint supervision it is hoped that any European banking crisis will be mitigated and the likelihood of future issues reduced.

The European Commissioner for the Euro Enzo Moavero Milanesi, and joint drafter of the Regulation alongside the European Commissioner for Financial Services and the Capital Markets Union Nadia Calviño, stated that "The Last Crisis was a European wide Crisis, the next one will also be a Pan-European Crisis as such we need Pan-European Solutions" when calling for the Council of the European Union and European Parliament to adopt the proposal.

This regulation along with Regulation 2020/2/EU and Directive 2020/1/EU forms part the European Financial Supervision & Capitalisation Regulatory Program.