Banking laws of EU member states are constantly revised by EU laws and policies oriented towards a unified market for financial services in the areas of banking, insurance and investment. Beginning with the First Banking Directive of 1977, which allowed banks to establish branches in member states, the Second Banking Directive of 1989 provided for minimum capital requirements and procedures for home country regulators to control the branches of financial institutions in other Member States. A 1985 EU White Paper proposed a single market in financial services from 1992 and suggested harmonization of key standards, movement of capital; joint coordination activities by regulatory agencies; control by the country of origin of the companies where the head office is located. The Banking Consolidation Directive covers credit and financial institutions, just as the European passport provides for services that could be provided by a company in other states with the approval of the home country's authorities. Banks could therefore operate in any part of the EU without the approval of regulators in each country with the concept of an EU passport or single license, subject to a license or authorization from the home country. The problem with a single approval or authorization is that it may be difficult for the home state to monitor compliance with the standards, as the standards cannot be uniform across the EU. Although the single market principle requires that businesses can operate anywhere in the community without obstacles or barriers, standards must be maintained, particularly in banking matters, as each state's case may present particular needs. The Capital Adequacy Directive for banks and investment firms was to ensure liquidity and viability...... middle of paper ......nationalist inclinations in some member states due to lack adequate monitoring and reporting of injured parties. The EU is expected to become more vocal in ensuring that its rules are applied and respected by member states. Ellinger, E. Lomnicka, RJA Hooley, Ellinger's Modern Banking Law, Fourth edition, OUP, Oxford, 2006, page 53. Drawing on the European Court of Justice's interpretation of the movement of goods in the Cassis case de Dijon 120/78 (1979) ECR 649 and Coditel case 262/81 [1982] Rec. 3381 Directive 2000/12/ECE.P. Ellinger, E. Lomnicka, RJA Hooley, Ellinger's Modern Banking Law, page 56Capital Adequacy Directive 93/6 [1993] OJ LI41/1Directive 94/19EEC[1994] OJ LI 35/5http://www.finance .yahoo.com/news/Why-is-the-irish-crisis-going-nousnews-4028366968.html?x=0http://www.euromove.org.uk