Valuation

The National Bank, as a competent resolution authority is responsible for ensuring objective and realistic valuation of the bank’s assets and liabilities, in the following instances:

• before initiating the resolution proceeding, in order to determine whether one of the bank resolution conditions is met (the so-called Valuation 1);
• for the purposes of decision-making regarding resolution activities, i.e. the choice between individual resolution tools and the financial effects of those activities (the so-called Valuation 2);
• in order to determine whether the shareholders and creditors of the bank under resolution would have incurred greater losses than would have incurred in a bankruptcy proceeding (the so-called Valuation 3).

All three valuations should be based on conservative assumptions and should be performed by an independent valuer i.e. an audit company, a certified auditor or an a valuer that meets the requirements for independence relative to the bank, in relation to any state body/authority and in relation to the National Bank.