# less significant institution (LSI)

- Canonical URL: https://www.gerhardmerk.de/less-significant-institution-lsi
- Post ID: 605567
- Modified: 2026-09-07T19:47:30+00:00
- Language: en

## Definition

A less significant institution (LSI) is a bank whose routine prudential supervision is carried out by a national competent authority within the Single Supervisory Mechanism. The European Central Bank monitors these institutions indirectly rather than supervising them itself on a day-to-day basis. This distinguishes LSIs from significant institutions, for which the ECB assumes direct supervisory responsibility.

## Machine-readable

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