SRB publishes Framework for Valuation
Brussels – 19 February 2019
The Single Resolution Board (SRB) has today published its Framework for Valuation.
The objective of this Framework for Valuation is to provide independent valuers and the general public with an indication of the SRB’s expectations regarding the principles and methodologies for valuation reports as set out in the legal framework. This refers to the so-called Valuation 2 - either provisional or definitive, as the case may require – as well as Valuation 3.
The Framework for Valuation aims at reducing uncertainty for both the independent valuers and the SRB, providing indications that are necessary for achieving the goals of the valuation, subsequently enhancing comparability and consistency of valuations across future resolution cases.
Speaking in Brussels, the Chair of the SRB, Dr Elke König said ‘This Framework is about, ensuring the consistency of the valuation reports which inform the decisions of the Single Resolution Board. Though directed at the independent valuation experts, the institutions will also benefit from a better understanding of valuation in resolution which will help them to increase its preparedness for resolution, ultimately improving their resolvability.’
The European Banking Authority (EBA) and the SRB have collaborated closely in their respective work on valuation. Additionally, the EBA and the SRB will continue to make progress together to define expectations towards the provision of accurate and timely information that is necessary for the performance of valuations in resolution.
About the Single Resolution Board
The Single Resolution Board (SRB) is the central resolution authority within the Banking Union (BU). Together with the national resolution authorities of participating Member States it forms the Single Resolution Mechanism (SRM). The SRB works closely with the European Commission (EC), the European Central Bank (ECB), the European Banking Authority (EBA) and national competent authorities (NCAs). Its mission is to ensure an orderly resolution of failing banks with minimum impact on the real economy and public finances of the participating Member States and beyond.
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