SSM: ECB publishes guideline and recommendation on options and national discretions for less significant institutions

The European Central Bank (ECB) has published a guideline and a recommendation on the exercise of options and national discretions (O&Ds) available in EU law in relation to less significant institutions (LSIs) which are directly supervised by national competent authorities (NCAs). The documents, both of which are addressed to NCAs, are intended to further harmonise the way that banks are supervised within the Single Supervisory Mechanism (SSM).

The documents follow the ECB's harmonisation of the exercise of O&Ds in the supervision of significant institutions (SIs) under its direct responsibility within the SSM. The ECB has applied many of the O&Ds in the same way for LSIs as for SIs.

For more information and resources on the SSM, see the Banking Union Topic Guide on the Clifford Chance Financial Markets Toolkit.