New consultation covers minimum data needed for valuation of bank in resolution
The Single Resolution Board (SRB) today launches a public consultation on its ‘standardised Data Set’ to ensure that a minimum level of data is available to support a robust valuation for resolution.
In 2019, the SRB published its Framework for Valuation. Its objective is to provide independent valuers with the SRB’s expectations regarding the principles and methodologies for valuation reports, as required under EU law. These reports are known as Valuation 2 – either provisional or definitive – as well as Valuation 3. Today’s publication is a follow up to the 2019 Framework for Valuation. The new ‘standardised Data Set’ is the second key building block of the SRB’s approach to valuation.
When preparing for resolution, the capacity of banks’ IT systems to provide accurate and timely information is vital for carrying out accurate valuations.
The consultation covers two documents:
- The ‘SRB Valuation Data Set instructions document’ develops the SRB Valuation Data Set and establishes clear expectations in relation to data needs. In order to serve these objectives, a common understanding of the definitions of the data fields is required. These data instructions provide additional guidance on detailed definitions of key topics and describe data definitions in detail.
- An explanatory note aiming to provide guidance to the banks regarding their MIS capabilities to produce information that is as up to date and complete as possible and of adequate quality to carry out a fair, prudent and realistic valuation.
The SRB Data Set does not impose any reporting obligations. It is a tool that defines the SRB’s expectations for the information it needs to perform an independent valuation, and provides guidance to institutions.
As part of the SRB’s drive to engage with and consult industry on key documents, the SRB invites feedback between 19 May 2020 and 30 June at 12:00 (Brussels time).
About the Single Resolution Board
The Single Resolution Board (SRB) is the central resolution authority within the Banking Union, which at present is the 19 Eurozone states. Together with the national resolution authorities it forms the Single Resolution Mechanism. The SRB works closely with the European Commission, the European Central Bank, the European Banking Authority and national authorities. Its mission is to ensure an orderly resolution of failing banks, protecting the taxpayer from state bail-outs, which promoting financial stability.
Media Contact details:
Email: Susan.Carroll [a] srb.europa.eu
Phone: + 32 2 490 3439
Mobile: + 32 470 96 48 01
Seán de Búrca
E-mail: Sean.de-Burca [a] srb.europa.eu
Phone: +32 2 490 3710
Mobile: +32 477 02 87 10
Camille de Rede
E-mail: camille.de-rede [a] srb.europa.eu
Phone: +32 2 490 3530
Mobile: +32 460 766 704
- Twitter: @EU_SRB