One area where a barrier to resolvability may arise is where the Bank is unable to obtain sufficiently timely and robust valuations to support the effective use of resolution tools. Timely and robust valuations are critical to ensuring that resolution action is sufficient to address the full extent of losses, that creditors are treated fairly through resolution, and that risks to public funds are minimised.
The Bank’s Statement of Policy on valuation capabilities to support resolvability includes principles for the data, information, models, governance, documentation, and assurance firms will need to have in place to support timely and robust resolution valuations. The deadline for compliance with the policy was Thursday 1 April 2021.
Published 28 May 2021. Effective from 28 May 2021.