Newsalert - EBA publishes Handbook on valuation for purposes of resolution

Newsalert - EBA publishes Handbook on valuation for purposes of resolution

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On 26 February 2019, the European Banking Authority (EBA) has published a Handbook on valuation for purposes of resolution. The Handbook, which is addressed to national and EU resolution authorities, aims at fostering the convergence and consistency of valuation practices as well as the interaction with independent valuers across the EU.

The Handbook, which is the result of close cooperation with national resolution authorities and the Single Resolution Board (SRB) intends to bridge the resolution regulatory approach with the valuation practices, by providing concrete guidance on the practical steps of the valuation process, on the specific valuation criteria applicable to the various resolution tools and, with a view to facilitating the adoption of an informed decision by the resolution authority, by indicating the content that is expected to be included in the valuation report.

Whilst the Handbook covers both the valuation before resolution and after resolution, it focuses on the valuation before resolution, thus supporting the resolution decision, which immediately impacts shareholders and creditors.

While it is not binding and not subject to ‘comply or explain’, the Handbook is aimed at fostering the convergence of practices in the implementation of the valuation process carried out in the context of the resolution proceedings pursuant to articles 36 and 74 of BRRD.


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