Less significant institutions (LSIs)

While the SRB is directly responsible for significant entities and groups under the direct supervision of the European Central Bank, as well as other cross-border groups, national resolution authorities (NRAs) are directly responsible for smaller banks, known as less significant institutions (LSIs). In order to ensure the effective and consistent functioning of the Single Resolution Mechanism (SRM), NRAs perform their tasks under the oversight of the SRB. 

The SRB ensures that high resolution standards are applied consistently across LSIs through structured collaboration with NRAs. Accordingly, the policies developed for SRB banks are applicable to LSIs, where relevant and in a proportionate way. Before adopting resolution measures with respect to LSIs, NRAs give the SRB the opportunity to express its views on the notified draft decisions. Furthermore, the SRB receives regular and ad hoc information from NRAs on the performance of their tasks.

More recently, the SRB and NRA work closely together to further strengthen their crisis readiness in line with the SRM Vision 2028 to ensure that the system remains robust and prepared for future challenges.