To prevent systemic crises in the Eurozone the Banking Union (BU) was created in the aftermath of the global financial crisis. The aim of the article is to analyse the main mechanisms of the BU and to evaluate its main problems in the circumstances of further financial integration. The main purpose of the BU is to ensure banking supervision, bank recapitalisation and an effective deposit insurance on the supranational level. The provided analysis has shown that certain problems of the banking sector remain in place and its stability cannot be guaranteed. The European Deposit Insurance Scheme is not implemented, the effectiveness of the Single Supervisory Mechanism is not obvious and the financial capacity of the Single Resolution Mechanism is limited. Meanwhile, the investigation of the financial integration indicators (price-based and quantify-based composite indicators) shows deepening financial integration in the Eurozone after the creation of the BU. This development may mitigate some contradictions of the uneven process of economic integration in the Eurozone. The theoretical value of this research is an attempt to define the main peculiarities of the mechanisms of the BU and their influence on financial integration in the Eurozone.