SRB launches public consultation on valuing banks in resolution

• Valuations are a critical component of successful bank resolution, forming the basis for resolution authorities’ decisions in crisis cases
• The consultation will run for three months from today

The SRB opens today a consultation on its Expectations on Valuation Capabilities. Valuations are a critical component of a successful resolution of banks, as they form the basis for resolution authorities’ decisions in crisis cases. Banks’ capabilities to produce data for valuations is key in handling a resolution case, as outlined in Chapter 10 of the EBA Handbook on valuation for purposes of resolution. 

The valuation determines the worth of a bank, specifically for resolution purposes, and is crucial for ensuring orderly resolution of failing banks with minimal impact on the economy.

The consultation is part of the SRB’s engagement with industry to improve crisis readiness. 

The document introduces expectations on:

1. Valuation Data Index (VDI), providing information necessary to perform valuations. To reduce the burden on banks, the VDI is built upon existing documents already available at bank level. The VDI does not require any documents or information that is not already publicly available or accessible to the SRB 

2. Data Repositories for Resolution (DRR), outlining the minimum functionalities expected for the DRR. The DRR is expected to be populated with VDI information at predefined frequencies 

3. Valuation playbooks, establishing the content and structure of such playbooks to help the independent valuer gain an in-depth understanding of banks’ internal valuation models and their application in business processes.   

Take part in the consultation here.

Expectations on Valuation Capabilities

PDF | 5.55 MB | Publishing date: 01/04/2025

This publication sets outs expectations that banks are expected to consider when implementing Principle 5.2 of the Expectations for Banks. In crisis, depending on the specific situation and in line with the applicable legal framework, the SRB reserves the right to deviate from actions and expectations outlined in this publication.

SRB Expectations on Valuation Capabilities - Annex 4

XLSX | 177.67 KB | Publishing date: 01/04/2025

SRB Expectations on Valuation Capabilities - Annex 4

SRB Expectations on Valuation Capabilities - Annex 5

XLSX | 144.8 KB | Publishing date: 01/04/2025

SRB Expectations on Valuation Capabilities - Annex 5