Timing of Valuation

The obligation in Article 36 of Directive 2014/59/EU (BRRD) only provides for an obligation to perform an ex ante valuation at the very beginning of the process. Subsequently the various resolution actions which will be deployed will in principle be based on the ex-ante valuation. Article 36(13) asks that valuation be an integral part of a decision to apply a resolution tool or to exercise a resolution power.                                                                                                           However, the authorities are not obliged to perform several valuations if several resolution actions are applied, although the resolution authority might have an interest in doing so if a certain timespan has elapsed between the two resolution actions and the basis for valuation is deemed to have evolved. Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.