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

    APRA Finalizes Reporting Standard for Operational Risk Requirements

    APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.

    March 03, 2021 WebPage Regulatory News
    News

    EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR

    EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).

    March 01, 2021 WebPage Regulatory News
    News

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    March 01, 2021 WebPage Regulatory News
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EBA Publishes Single Rulebook Q&A Updates in February 2021

    The EBA Single Rulebook question and answer (Q&A) tool updates for this month include answers to ten questions.

    February 26, 2021 WebPage Regulatory News
    News

    ESMA Releases Schema and Instructions for Securitization Reporting

    ESMA updated the set of questions and answers (Q&A), along with the reporting instructions and an XML schema for the templates set out in the technical standards on disclosure requirements, under the Securitization Regulation.

    February 26, 2021 WebPage Regulatory News
    News

    EU Rule Amends Requirement for European Single Electronic Format

    EU published Regulation 2021/337, which amends the Transparency Directive (2004/109/EC), regarding the use of the single electronic reporting format for annual financial reports.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6637