EU policymakers are once again advocating for cross-border bank mergers to tackle the massive investments required for the bloc's green and digital transitions. Despite efforts to establish a comprehensive banking union, progress has been hindered by the lack of a joint deposit guarantee system in the euro zone. The absence of a European Deposit Insurance Scheme (EDIS) complicates cross-border acquisitions, as current regulations enforce national-level liquidity and capital management, preventing efficient cross-border operations. This setup, while ensuring stability for individual countries, discourages international banking takeovers and restricts the free movement of assets within the banking union.