The main topic of this paper is the validity of the establishment of an EU agency, the Single Resolution Board, ie whether it was created on a valid legal basis in accordance with the Treaty of Lisbon. More broadly, but also on a smaller scale, the topic of the paper is also whether the creation of an EU agency, such as the SRB, is a prime example of transition from a system of EU vertical federalism to a system of EU horizontal federalism and whether that transition is in accordance with the constitutional framework of the EU. The paper will also give an explanation of the three stages of the European Banking Union, the term 'resolution', and a brief overview of the SRB. 1 Introduction: the research problem, its background and the structure of the paper 'Everyone therefore who hears these words of mine, and does them, I will liken him to a wise man, who built his house on a rock. The rain came down, the floods came, and the winds blew, and beat on that house; and it didn't fall, for it was founded on the rock. Everyone who hears these words of mine, and doesn't do them will be like a foolish man, who built his house on the sand. The rain came down, the floods came, and the winds blew, and beat on that house; and it fell-and great was its fall.' 1 This paragraph from the Gospel of Matthew is about wise and foolish builders. This paper will, in essence, analyse whether the EU acted as a wise builder when it built the Single Resolution Board (hereinafter: 'SRB' or 'the Board'). The builders of the principal building of the European Parliament in Strasbourg, France, the Louise Weiss building, intended it to carry heavy * The authors are fifth-year students at the Faculty of Law of the University of Zagreb. We would like to express our gratitude to our mentor Jean Monnet Professor Tamara Ćapeta for her support, guidance and help through the preparation of this paper. Without her help, this paper would not have been possible. We would also like to thank the entire Chair of European Public Law at the University of Zagreb for their creative ideas, suggestions for various sources of information during the European Law Moot Court Competition on the topic of the European Banking Union which inspired us to write this paper, and for allowing us to borrow a large amount of literature. 1 Matthew 7:24-27, Revised Standard Version of the Bible.