SRB Publishes Second Report On Resolution Planning And Crisis Management For LSIs In 2023 And 2024

RegCORE – Client Alert | Banking Union

QuickTake

On 12 September 2024, the Single Resolution Board (SRB) published its second¹ report (the Report)² on resolution planning and crisis management for smaller banks i.e. those that are categorised as less significant institutions (LSIs) in the context of Banking Union supervision and resolution. LSIs, with the exception cross-border LSIs, remain for purposes of the Single Resolution Mechanism (SRM) under the direct responsibility of national resolution authorities (NRAs) with the SRB having an oversight role.

As at 1 January 2024 there were 1,915 LSIs³ at the highest level of consolidation with an aggregate total assets of EUR 4.9 trillion (approximately a third of the GDP of the 21 Banking Union participating Member States. Three quarters of LSIs are cooperative and savings banking networks. Some of the remaining 500 LSIs are custodians, investment banks, or financial market infrastructures. 17 NRAs have