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.
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Publicatietype
Beleidsterrein
Zoekterm
- bankbeleid
- bedrijfsorganisatie
- beleggingsmaatschappij
- burgerlijk recht
- ECONOMIE
- ECONOMIE, VERKEER EN HANDELSVERKEER
- economisch beleid
- economische situatie
- economische stabilisatie
- EU-instellingen en Europese overheid
- Europese Bankautoriteit
- EUROPESE UNIE
- financiële hulp
- financiële instellingen en krediet
- financiële interventie
- financiële solvabiliteit
- FINANCIËN
- handelsbeleid
- INTERNATIONALE BETREKKINGEN
- kredietinstelling
- liquiditeit
- monetaire economie
- ONDERNEMING EN CONCURRENTIE
- onderneming in moeilijkheden
- RECHT
- samenwerkingsbeleid
- steun voor herstructurering
- toezicht op de markt
- vrij verkeer van kapitaal