The European agency system has been measured against the principle of institutional balance since its inception in the mid-1970s, like no other phenomenon of EU self-administration. With the establishment of the European Banking Authority (EBA) and its adaptation to the banking union in the euro area, the controversy surrounding the compatibility of the agency model with institutional balance has gained renewed momentum. The author fundamentally examines the scope and limits of the permissibility of establishing European agencies against the standard of the principle of institutional balance. Particular emphasis is placed on the significance of "independent European administration," to which the treaties clearly commit in Article 298 TFEU. The EBA is chosen as a representative subject of investigation. The author concludes that the delegation of powers to the EBA is in line with the principle of institutional balance.