Valuation reports in the context of banking resolution: What are the challenges?
The paper discusses the problem of valuation in bank resolution. In an overview over the most relevant principles of valuation theory, the paper notes the difficulties inherent in valuing risks and illiquidity in holding non-traded assets. Subsequently, the paper briefly reviews the resolution of Banco Popular Español, and then discusses the need for clarification of the no-investor-worse-off principle, the relation between the price in a sale of business and the presumed outcome in an insolvency procedure, and the difficulties attached to assessing the value of an illiquid asset that is held. The paper concludes with a discussion of the need for time, for valuation and in resolution, warns against a moratorium on withdrawals and payouts, and argues that time pressures would be much reduced if funding in resolution was provided for.
Analyse approfondie
À propos de ce document
Type de publication
Domaine politique
Mot-clé
- aide financière
- aide à la restructuration
- Autorité bancaire européenne
- DROIT
- droit civil
- entreprise en difficulté
- ENTREPRISE ET CONCURRENCE
- FINANCES
- institutions de l'Union européenne et fonction publique européenne
- institutions financières et crédit
- intervention financière
- libre circulation des capitaux
- liquidité monétaire
- organisation de l'entreprise
- politique bancaire
- politique commerciale
- politique de coopération
- politique économique
- RELATIONS INTERNATIONALES
- situation économique
- société d'investissement
- solvabilité financière
- stabilisation économique
- surveillance du marché
- UNION EUROPÉENNE
- ÉCHANGES ÉCONOMIQUES ET COMMERCIAUX
- ÉCONOMIE
- économie monétaire
- établissement de crédit