Valuing banks in resolution (EoVC)

Accurate and timely valuations are essential for the effective resolution of banks, as they underpin authorities’ key resolution decisions. Reliable valuations depend on banks’ management information systems (MIS) and their ability to provide comprehensive data quickly.

To ensure this, the Single Resolution Board (SRB) has finalised its Expectations on Valuation Capabilities (EoVC), following a public consultation between 2 April and 2 July 2025. The final guidance builds upon the SRB's Valuation Data Set (VDS) published in 2020 and represents a key deliverable under the SRB’s SRM Vision 2028, aimed at enhancing banks' crisis readiness.

The EoVC enhances and expands the 2020 framework by

• introducing a Valuation Data Index (VDI) covering both structured and unstructured information,
• establishing clear expectations for a Data Repository for Resolution (DRR), and
• formalising requirements for Valuation Playbooks, including self-assessment model use and governance.

The SRB’s EoVC aim to ensure that independent valuers have timely access to comprehensive, high-quality information to carry out fair and realistic valuations in resolution. To achieve this, the VDI establishes a minimum, structured index of information required to support resolution valuations, combining

• an enhanced structured Valuation Data Set (VDS) covering asset- and liability-level data as well as portfolio-level information, together with the Minimum Bail-in Data Template (MBDT), both prepared and stored in the DRR, and
• a defined set of unstructured documents, such as audit reports, risk reports, business plans and documentation on internal valuation models.

The SRB explicitly aims to leverage existing bank data and documentation "as far as possible", avoiding duplication of information already available through supervisory or public channels. By frontloading data collection in business-as-usual conditions, the SRB seeks to improve data quality, reduce reliance on ad hoc requests during crises, and ensure consistency across valuation processes. In support of these objectives, the EoVC also introduce technical submission and extensive validation rules, supporting automated valuation processes and effective quality assurance.

To support the VDI, banks are required to establish a Data Repository for Resolution (DRR) to store, manage and share VDI information.

The DRR ensures

• timely availability of data in crisis situations, and
• efficient and structured data collection during business-as-usual periods.

In addition, the EoVC introduces a formal requirement for Valuation Playbooks, documenting banks' valuation capabilities in a structured and transparent manner.

The playbook must cover:

• A valuation self-assessment, focusing on methodologies and valuation challenges
• The use and flexibility of internal valuation models
• Governance arrangements, including data lifecycle management, approval processes, quality assurance and management responsibilities

These playbooks are intended to enable independent valuers to quickly understand banks' valuation approaches and, where appropriate, rely on existing internal models.

The SRB has extended the EoVC implementation timeline by one year, with full adoption now expected by the end of 2029. Key milestones are staggered to support a phased rollout.

For VDI items with a year-end cut-off date, the first submissions are due by 30 April 2029, except for the VDS (VDI item 1.1) and other structured VDI items (1.2-1.4), which are due by 30 April 2030.  VDI documents with cut-off dates indicated as ‘Latest version available’ should be submitted for the first time starting from 1 January 2029. Intermediate milestones for the Valuation Playbook will be communicated via annual priorities letters.

Banks will phase in these new expectations gradually, ensuring that ad hoc VDS 2020 capabilities remain available until the full implementation of the EoVCs. The SRB has also indicated that the EoVCs may be further refined over time to reflect regulatory developments, market feedback, and lessons learned from practical experience.

In summary, we can conclude that, based on industry feedback, the SRB has further revised its guidance and incorporated several simplifications. However, the fundamental requirements remain in place and will continue to pose challenges for banks in the coming years.

For further details, please refer to https://www.srb.europa.eu/en/content/expectations-valuation-capabilities