Overview

A national resolution authority (NRA) is the public administrative authority designated by each Member State to carry out resolution functions under the BRRD. Every Member State must designate one or more such authorities, empowered to apply the resolution tools and exercise the resolution powers set out in the framework. Examples include specialised bodies and, in some States, units within the national central bank or the supervisor, subject to safeguards for operational independence from supervision.

Role within the Single Resolution Mechanism

For banks in Member States participating in the banking union, the NRA operates within the Single Resolution Mechanism (SRM) alongside the Single Resolution Board (SRB). The division of labour follows the significance of the institution. The SRB is directly responsible for the most significant banks and cross-border groups, while NRAs are directly responsible for the resolution planning and, where needed, resolution of less significant institutions established in their territory. Even where an NRA leads, it acts within the framework and instructions of the SRB, which may at any time decide to exercise its powers directly over any institution to ensure consistency.

NRAs also execute the decisions taken at central level. When the SRB adopts a resolution scheme, it is addressed to the relevant NRAs, which take the national measures needed to implement it in accordance with national law. NRAs contribute staff and expertise to the internal resolution teams that plan significant groups and participate in resolution colleges for cross-border groups.

The obligation to designate resolution authorities and the arrangements for their independence are set out in the BRRD (Art. 3). Within the banking union, the role of NRAs and their relationship with the SRB are governed by the SRM Regulation (Regulation 806/2014), which allocates tasks between the central and national levels. Outside the banking union, NRAs act directly under the national law transposing the BRRD.

Where separation of functions applies

Because the same public body may perform both supervision and resolution, the framework requires structural arrangements to ensure operational independence and to avoid conflicts of interest between the supervisory function and the resolution function, including separate reporting lines and staff where the two are housed in one institution.

Relevance for banks and investors

Identifying the responsible NRA matters for any institution not resolved directly by the SRB, because that authority sets the resolution plan, determines MREL, and would apply resolution tools. For investors in smaller banks and in non-banking-union Member States, the NRA is the counterparty whose decisions shape loss-absorbing requirements and the practical mechanics of any resolution or liquidation.