Creating a Single Market for Banking Institutions in EU Coursework - 1

Creating a Single Market for Banking Institutions in EU - Coursework Example Theories promote the use of market in achieving economic and monetary union. It is assumed that the stages of the union eliminate achievement of previous stages and that gradual achievement of the new stages adds common elements. The monetary policy is centralized by the ECB (European central bank) the European Union has attempted different approaches to economic integration in the banking institutions. The approaches leave the fiscal policy instruments to the disposal of the governments of European Union member states. The decision that resulted from discrepancies in economic development made it possible for policy makers to react to changes in the economic trend within various stages of the business cycle. The aim of minimizing the discrepancies in economic development is one purpose for the EU and a condition to deepen integration processes (Bradley 2014). The EuropeanCommissionn presented a proposal of methods that member states of the EU could use to support the real economy while enhancing confidence. The methods support the economic and social integration. The aim was to ensure that the banking institution attain smart growth throughthe development of knowledge based on innovations and sustainable growth that supports initiatives for low emission economy. The aim was also to attain inclusive growth that facilitates social inclusion and support of the economy. Inclusive growth is characterized by high employment levels and the economic, social, and territorial cohesion is ensured (Quaglia 2013). The economic crisis madethe preparation of new regulatory frameworks a necessity to increase stability within the financial sector. The EU took a step in restructuring the banking sector so that its long-term profitability could be restored to ensurethe functioning of credit activities.