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Banking fragility rooted in justice failures Evidence from Ukraine
CEPS Project

Valuation reports in the context of banking resolution: What are the challenges?

Unit Involved

Financial Markets and Institutions

01 March 2018 / 31 May 2018

This study discusses the challenges concerning bank valuation reports in resolution. The resolution mechanism has three types of valuation reports, respectively to determine whether a bank is failing or likely to fail (valuation 1), to inform the use of the resolution tools including bail-in (valuation 2), and to ensure that the no creditor worse off condition is respected (valuation 3). The first experience with the preparation of valuation reports shows that even with the more formal procedures there are still substantial uncertainties regarding the outcome of these valuations due to organisational, legal and economic challenges. Additional mitigating measures should be considered to reduce the uncertainty.

CEPS Project

Project Details

Financial Markets and Institutions


Valuation reports in the context of banking resolution: What are the challenges?

More About...

European Parliament, DG Internal Policies of the Union

Contact
Willem Pieter De Groen Willem Pieter De Groen
Willem Pieter De Groen
+32 (0)2 229 39 57

Publications

Here are the publications published for this project