SRB publishes its final Valuation Data Set

The Single Resolution Board has published today its standardised data set to ensure that the minimum needed data is available to support a robust valuation for bank resolution.

The SRB approach to valuation relies on banks’ ability to provide accurate and timely information in case of resolution. A standardised data set covering the minimum data needed for valuation will help banks have their management information systems ready to deliver.

“In resolution, the capacity of banks’ management information systems to provide accurate and timely information is crucial for the reliability and robustness of valuations. This data set will help banks to ready their systems.” – Elke König, Chair of the Single Resolution Board

As part of its annual resolvability assessment, the SRB will evaluate the capacity of banks to collect and provide this information on a timely basis to resolution authorities and/or valuers.

Following the public consultation, the SRB is publishing three documents:

• The SRB Valuation Data Set instructions document, developing the SRB Valuation Data Set and establishing clear expectations in relation to data needs.
• The 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.
• A feedback statement to the consultation that addresses the main comments received on the consultation and it is published alongside the final SRB Data Set for valuation.

Background

In 2019, the Single Resolution Board (SRB) published its Framework for Valuation. The objective of this framework is to provide independent valuers with an indication of the SRB’s expectations regarding the principles and methodologies for valuation reports as set out in the legal framework i.e. Valuation 2 – either provisional or definitive, as the case may require – as well as Valuation 3. 

Following the publication of the Framework for Valuation, a second key building block of SRB’s approach on valuation is the definition of a standardised data set covering the minimum data needed for the valuation of a bank in resolution.

The SRB Valuation Data Set is the implementation for the Banking Union of the EBA Data Dictionary. The SRB and the European Banking Authority (EBA) have been collaborating closely in their respective work to standardise data set for valuation in resolution.