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    SRB Publishes Standardized Dataset for Valuation of Bank in Resolution

    December 11, 2020

    SRB published its standardized dataset to ensure that the minimum needed data is available to support a robust valuation for bank resolution. The valuation dataset will ensure consistent implementation of the EBA data dictionary for the Banking Union. Following a public consultation from May 2020 to June 2020, SRB has published three documents: a valuation dataset instructions document, an explanatory note, and a feedback statement on issues raised during the consultation process. The explanatory note offers guidance to the banks regarding the Management Information System (MIS) capabilities required 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 standardized dataset covering the minimum data needed for valuation will help banks have their information systems ready to deliver.

    SRB valuation dataset instructions document establishes clear expectations with respect to data needs. The instructions provide guidance on detailed definitions of key topics and describe data definitions in detail. Such expectations will enable banks to gradually adapt their MIS to provide accurate data within shorter timeframe. The SRB valuation dataset is a benchmark for institutions and internal resolution teams by setting both data and information expectations. It includes a predefined set of information that a valuer would ideally have available to conduct a valuation. The SRB valuation dataset, as far as possible, relies on the existing common definitions used in the regulatory, supervisory, and reporting frameworks in EU and takes proportionality into account in its implementation. As a result, data reported under the existing EU regulatory framework (AnaCredit or European Market Infrastructure Regulation) does not form part of the
    SRB valuation dataset. In principle, all entities within the scope of the Bank Recovery and Resolution Directive (BRRD) and Single Resolution Mechanism Regulation (SRMR) may be required to maintain detailed records of data and information as defined by the SRB valuation dataset, EBA data dictionary, or the existing EU standards.

    The explanatory note on SRB valuation dataset highlights that SRB approach to valuation relies on the ability of the MIS of banks to provide accurate and timely information in the context of resolution readiness. In this respect, SRB believes in the importance of defining a standardized dataset covering the minimum data needed for the valuation of a bank in resolution. SRB has been working on defining the (minimum) set of data that the banks will, in principle, need to provide to SRB and the independent valuer to perform a valuation. As part of its annual resolvability assessment, SRB will evaluate the capacity of banks to collect and provide this information on a timely basis to resolution authorities and/or valuers.

    SRB had published its framework for valuation in 2019. This framework is intended to provide independent valuers with an indication of the SRB expectations regarding the principles and methodologies for valuation reports, as set out in the legal framework that is Valuation 2 (either provisional or definitive) and Valuation 3. Following the publication of the framework for valuation, a second key building block of the SRB approach on valuation is the definition of a standardized dataset covering the minimum data needed for the valuation of a bank in resolution. SRB and EBA have been collaborating closely in their respective work on a standardized dataset for valuation in resolution.

     

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    Keywords: Europe, EU, Banking, Proportionality, BRRD, SRMR, Resolution Planning, Resolution Framework, Reporting, Valuation in Resolution, Reporting, Valuation in Resolution, Valuation Dataset, SRB

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