A strategic shift toward resolution readiness
The Expectations on Valuation Capabilities (EoVC) is a framework developed by the Single Resolution Board (SRB) to ensure that banks can provide timely, structured, and high-quality data to support valuations in resolution. It defines the minimum capabilities banks are expected to have in place to meet the requirements of Principle 5.2 of the SRB’s Expectations for Banks (EfB), which focuses on the ability of management information systems (MIS) to produce valuation-relevant information that is as complete and up to date as reasonably possible.
The EoVC builds on the SRB’s 2019 Valuation Framework and the 2020 Valuation Data Set (VDS), incorporating lessons learned from real-life resolution cases and industry feedback.
It expands the VDS 2020 guidance with a more robust and scalable approach, enhancing data granularity and introducing new elements such as a Valuation Data Index (VDI), permanent data repository, and internal governance through valuation playbooks.
Importantly, the EoVC marks a significant step in the SRB’s broader evolution toward more granular, integrated, and automated regulatory reporting and timely valuation in resolution. This shift reflects the growing need for resolution authorities to access consistent, high-quality data at short notice—moving away from ad hoc data collection toward a more structured and proactive approach.
The EoVC applies to a broad range of institutions within the Banking Union, including:
The Internal Resolution Team (IRT), appointed by the SRB, determines the scope and depth of application for each institution. This assessment considers the institution’s role in the resolution strategy, legal structure, and business model. While REs and credit institution RLEs are generally expected to comply with the full scope of the EoVC, non-credit institution RLEs may be subject to reduced requirements.
The EoVC guidance builds on and enhances the existing framework by outlining clear expectations for the data banks must provide, the systems used to store and share this data with the SRB, and the documentation needed to explain their valuation models. The SRB highlights that these expectations are consistent with the SRM Vision 2028 strategy, which prioritizes strengthening crisis preparedness. The guidance aims to make use of existing data and tools wherever feasible, while also ensuring that banks establish strong, practical valuation capabilities for use in resolution situations.
The SRB's guidance (publication date: April 2025) introduces three core pillars of the EoVC:
The VDI is a comprehensive inventory of valuation-relevant data that banks must maintain. It includes both structured data—primarily the enhanced VDS—and unstructured documents such as business plans, audit reports, tax calculations, and internal model documentation.
The VDS provides granular, instrument-level data across loans, securities, derivatives, liabilities, and collateral protections. Banks must organize their balance sheets into valuation clusters and subclusters, which are used consistently across the VDS and playbooks. This structure supports consistent, model-ready data for independent valuers.
To ensure quality, banks must apply validation rules covering:
Each VDS submission must be accompanied by a data quality report. The VDI also includes mapping fields to align with frameworks like AnaCredit, EMIR, SHS, the Liability Data Report (LDR) and the Minimum Bail-in Data Template (MBDT). Specialised data sets are included for real estate, shipping, aviation, and renewables to support accurate collateral valuation.
The DRR is a secure, continuously accessible platform where all VDI content is stored and updated. It ensures that resolution-relevant data is readily available to the SRB and independent valuers, especially in crisis scenarios.
Banks must ensure the DRR supports:
Designated IRT staff must have permanent access, and banks must be able to grant or modify access rights promptly as needed. For large files, secure transmission methods, such as FTP, must be in place.
Valuation Playbooks document how a bank prepares for and supports valuations in resolution. They include:
Each bank must appoint a single point of contact (SPOC) for resolution valuations. Playbooks must be updated at least annually, validated by senior management, and reflect lessons learned from testing and IRT feedback.
Although the Single Resolution Board (SRB) has not set a binding implementation date, a gradual phase-in of the new expectations is planned. In the interim, the existing measures that banks have used to produce the SRB VDS 2020 on an ad-hoc basis will remain in effect.
To ensure alignment with the forthcoming expectations, institutions have begun internal preparations, including conducting gap analyses and mapping exercises. The implementation timeline is expected to be shaped by ongoing SRB engagement with banks and may include traditional mechanisms to to support a smooth transition.
With the public consultation closed on 2 July 2025, the SRB is expected to finalise the EoVC in the coming months. Based on current information, the first practical application of the expectations is likely to take place by the end of 2027.
Institutions should therefore begin aligning their systems, data governance, and valuation processes with the EoVC framework well ahead of this timeline, in order to support smooth implementation and supervisory readiness.
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