Featured Product

    EBA Guides on Assessment of MIS of Firms for Valuation in Resolution

    March 10, 2020

    EBA published information on how resolution authorities should assess management information systems of institutions, in context of the resolvability assessment. The intent of this assessment is to ensure that data and information are swiftly provided to support a robust valuation for resolution (valuation MIS). This information (chapter) is a part of the EBA handbook on valuation for purposes of resolution and aims to enhance institutions’ preparedness in business as usual to support a timely and robust valuation in case of resolution.

    The EBA approach to valuation MIS embeds the proportionality principle since it relies, as far as possible, on the institutions’ internal capabilities, intended as a combination of internal data aggregation capabilities and internal valuation models that are suitable for the valuation for resolution. The valuation MIS approach is complemented by a data dictionary for benchmarking purposes, which does not introduce any reporting obligation and is expected to be used by institutions to perform a self-assessment of the internally available data and information. The results of the self-assessment will form the basis of a dialog between the institution and the resolution authorities in the context of the materiality of on‐and off‐balance‐sheet positions and the resolvability assessment, to calibrate the valuation MIS requirements; this takes into account the internal valuation models suitable for the valuation for resolution, the size, complexity, and business model of the institution. 

    If expectations of resolution authorities about the data and information needed to support a robust valuation are not met by an institution, the authority should consider requiring that the institution carries out actions proportionate to the nature and materiality of the failure to meet such expectations to ensure the feasibility and credibility of the resolvability of an institution. The resolution authorities should determine a timeline within which institutions should be expected to complete the development of the Valuation MIS. This timeline should take into account resolution planning needs aimed at ensuring the credibility and feasibility of the resolution strategy and operationalization requirements of institutions. 

    The information is addressed to the resolution authorities, with a view to strengthening the convergence of resolution practices across EU to ensure a level playing field. It not only sets out EU best practices and high-quality methodologies and processes but also supports the resolution authorities in their interaction with the institutions destined for resolution for the purposes of the development or adjustment of the Valuation MIS. 

     

    Related Links

    Keywords: Europe, EU, Banking, Resolvability Assessment, Proportionality, Resolution Framework, EBA Handbook, Valuation of MIS, Resolution Plannning, EBA

    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582