The Bank of England’s policy on valuation capabilities to support resolvability

Responses to Consultation and Statement of Policy
Published on 13 June 2018

One area where a barrier to resolvability may arise is where the Bank is unable to obtain sufficiently timely and robust valuations to support the effective use of resolution tools. Timely and robust valuations are critical to ensuring that resolution action is sufficient to address the full extent of losses, that creditors are treated fairly through resolution, and that risks to public funds are minimised. 

The Bank has released its final Statement of Policy on valuation capabilities to support resolvability. The policy statement also discusses responses to the consultation paper published in August 2017. The policy includes principles for the data, information, models, governance, documentation, and assurance firms will need to have in place to support timely and robust resolution valuations. The deadline for compliance with the policy is 1 January 2021.

PDFThe Bank of England’s policy on valuation capabilities to support resolvability

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