This thesis examines the cross-border banking operations within the European Union. Examining the possible forces behind significant cross-border financial integration in the region, the article explains in detail how each of these elements influence the degree of integration depending on the banking ties with other neighboring nations. Employing both qualitative and quantitative methods of data collection, this thesis analyzed the factors contributing to decline in the cross-border banking activities and suggesting future implementations that can be used to boost the activities for the benefit of banks operating in the Euro area. Overall, it is evident that the EU cross-border banking integration was driven to a greater extent by source country factors. The study provides the different trends in the integration of banks while discussing the ways of curbing factors that may lead to global financial crisis in European banks.