The EBA published its final report entitled ‘Regulatory Technical Standards on valuation for the purposes of resolution and on valuation to determine difference in treatment following resolution under Directive 2014/59/EU on recovery and resolution of credit institutions and investment firms’ on 23 May 2017.
The report deals with two sets of draft regulatory technical standards (RTS) on valuation - one before resolution and one after resolution - under Articles 36 and 74 of the Bank Recovery and Resolution Directive (BRRD) respectively. The draft RTS are intended to promote consistent application of methodologies for valuations in relation to the principles upon which an independent ‘valuer’ must apply their own judgment and expertise to valuations.
The final report sets out two sets of draft RTS, namely
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a draft RTS covering valuations before resolution EBA/RTS/2017/05, and
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another draft RTS covering valuations after resolution EBA/RTS/2017/06.
The two draft RTS complete the EBA's regulatory activity on valuation for the purposes of resolution and have been submitted by the EBA to the EU Commission for endorsement. Once the Commission has adopted them and submitted them to the European Parliament, the scrutiny period starts.
In the context of informal cooperation, MEP Philippe LAMBERTS, Shadow Rapporteur on BRRD (Greens), raised various questions and comments on specific wording in both draft RTS, e.g. on the effects of using ‘may’ or ‘where appropriate’ on the binding nature of the texts; as well as on the clarity of specific paragraphs. His comments and the informal replies by the EBA are provided in detail in the annex.
Full paper
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