Valuations are a critical component when banks are failing or likely to fail, forming the basis for resolution authorities’ decisions in crisis cases. Banks’ capabilities to produce data for valuations are addressed by the SRB’s Expectations for Banks (EfB), Principle 5.2, which requires banks to have management information systems (MIS) capabilities in place to produce up-to-date and complete information, to ensure a fair, prudent and realistic valuation.
Based on comprehensive market feedback and experience in real-life cases, the SRB Expectations on Valuation Capabilities (EoVC) build on, and expand, the current approach based on the SRB Valuation Data Set, published in December 2020 (VDS 2020).
The Expectations on Valuation Capabilities will serve as a blueprint for further work in resolution planning, including the operationalisation of transfer strategies and the mobilisation of collateral.
The document introduces expectations on:
Valuation Data Index (VDI): this index provides a comprehensive set of information necessary for performing valuations. The VDI will include an enhanced version of the Valuation Data Set (VDS) ,incorporating industry’s feedback based on the implementation of the VDS 2020. To reduce the burden on banks, the VDI is built upon existing documents already available at bank level. To avoid duplications, the VDI does not require any documents or information that are not already publicly available or accessible to the SRB (e.g., supervisory information).
Data Repositories for Resolution (DRR): the document outlines the minimum functionalities expected for the DRR. Banks will have the flexibility to choose the technical solutions that align most effectively with their own MIS architecture, whether through fully in-house solutions or external vendor options. The DRR is expected to be populated with VDI information at predefined frequencies.
Valuation playbooks: the document establishes expectations on the content and structure of the valuation playbooks, which will help the independent valuer gain an in-depth understanding of banks’ internal valuation models and their application in business processes.
The Expectations on Valuation Capabilities is structured in seven chapters and six annexes, on which the consultation aims to gather stakeholders’ views.
Take part in the consultation here.
The SRB invites comments on all proposals, in particular, on the specific questions by 2 July 2025.
The consultation is part of the SRB’s engagement with industry in order to achieve its mandate and deliver on the SRM Vision 2028 strategy’s focus on improving crisis readiness.
It builds on the work already carried out, designed to leverage on existing data and solutions, while ensuring that banks prepare effectively for resolution.
