A single regulator to oversee banks across all 27 European Union states could be in place as early as 2013 according to the European Commission.
A controversial new bank bailout fund financed by a tax on financial institutions is also planned.
The proposal includes an EU-wide deposit guarantee scheme to protect savers in the event of a bank collapse.
The UK has said it would not sign up to a full banking union, suggesting it should only be for eurozone members.
The BBC understands a timetable for the plan will be agreed at a European Council Meeting on 28 and 29 June in Brussels.