FFSA to launch competitive tendering for valuation services in 2019 – valuation principles and reporting expectations harmonised within the EU
The Single Resolution Board (SRB) has published a framework on principles steering the activities of independent valuers and related reporting expectations for the purposes of resolution. The objective of the framework is to improve the mutual comparability of the work conducted by various valuers, to reduce uncertainties related to the valuation process and to improve the consistency of reporting practices within the banking union.
The Financial Stability Authority (FFSA) will take the framework published by the SRB on 19 February 2019 into account in discussions on valuation to be undertaken with market participants during the spring. The objective of competitive tendering to be launched after the discussions is to prepare framework agreements with companies providing valuation services and thereby strengthen the operating capabilities of the Financial Stability Authority in a national resolution event. The tendering for the framework agreement will be conducted in cooperation with Hansel, the government unit for joint procurement.
The European Banking Authority (EBA) has also published an instructive Handbook on valuation for national resolution authorities on 22 February 2019.