On 10 March 2020, the European Banking Authority (EBA) published a new chapter of its Handbook on valuation for the purposes of resolution. The new chapter replaces chapter 10 relating to management information systems.
The new chapter deals with resolution authorities’ assessment, in the context of the resolvability assessment, of the institutions’ capability to swiftly provide data and information to support a robust valuation in the event of resolution.
The new chapter, like the whole Handbook, is based on Article 29(2) of the Regulation establishing the EBA and is addressed to resolution authorities, with a view to strengthening the convergence of resolution practices across the EU to ensure a level playing field.
The Handbook is not binding and not subject to comply / explain by resolution authorities. However, the EBA expects resolution authorities to follow the Handbook’s approach when assessing an institution’s valuation management information system in the resolution planning phase.