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This chapter analyses the banking union’s institutional structure and whether it has provided an effective supervisory and resolution framework and has contributed to the integration, stability, and resilience of the Euro Area banking system. It argues that the banking union’s Single Supervisory Mechanism and Single Resolution Mechanism have achieved a considerable degree of effectiveness by coordinating their activities with other European Union institutions and agencies, and with member state authorities. Euro Area banking markets, however, continue to suffer from economic stagnation, fragmentation, and fragility. The chapter suggests that more effective implementation of EU bank regulatory and technical standards and guidance, including more harmonisation in supervisory decision-making and resolution practices, is needed to support the integration and stability of Euro Area banking markets. The chapter also argues that the ECB and national competent authorities should coordinate more effectively in fulfilling macro-prudential tasks and utilizing macroprudential tools. The chapter considers some of the main challenges in further developing the banking union and whether recently adopted EU legislation adequately addresses gaps and weaknesses in banking supervision, regulation and resolution. It also discusses the challenges involving the regulation of financial infrastructure, including central counterparties, and the risks associated with non-bank financial institutions.