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Online seminar: ‘Valuation in Resolution’

On 12 March 2020 the Florence School of Banking and Finance teamed up with speakers from the Single Resolution Board and the European Banking Authority for an online seminar on the topic of ‘Valuation in Resolution’. This event was organised to provide an update on valuation in resolution, by providing a description about how Europe’s Single Resolution Board plans to embed valuation preparedness into resolution planning activities and the proposed approach regarding improvement of the Management Information System for valuation.

The event was opened by Boštjan Jazbec, Member of the Board and Director of Resolution Planning and Decisions, Single Resolution Board, who framed the general objective and needs of the SRB’s framework for valuation. The SRB has worked to provide clear expectations regarding the principles and methodologies for valuation in resolution and it expectations regarding the results of the valuation.

The introduction was then followed by Jose Carlos Molina Franquelo, Head of Unit Resolution Planning at the Single Resolution Board. Firstly, he provided more information on the framework for valuation, concentrating on its goal – that of reducing uncertainty for both the independent valuers and the SRB, providing indications that are necessary for achieving the valuation’s goals, subsequently enhancing comparability and consistency of valuations across future resolution cases. Secondly, he focused on the improvement of MIS for valuation. Starting from the assumption that the capacity of banks’ management information systems to provide accurate and timely information is crucial for the reliability and robustness of valuations within the context of resolution, he argued that data availability is a fundamental prerequisite for the work in valuation.

The joint intervention by SRB speakers outlined a general description on how the SRB plans to embed the preparation for valuation in resolution planning and crisis preparedness. Their presentation was followed by a commentary by Anna Gardella, Senior Expert at the European Banking Authority, who delivered her commentary on the grounds of the close cooperation between the SRB and the EBA, which are working closely in their respective activities on a standardised data set for valuation in resolution. In this occasion, among other considerations, the main differences between the SRB Data Sets and the EBA Data Dictionaries were explained.

Presentation by the SRB

Presentation by the EBA