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

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552