EBA: Draft regulatory technical standards on prudent valuation under Article 105(14) of Regulation (EU) 575/2013 (Capital Requirements Regulation - CRR)

EBA has launched a consultation on draft standards which set out the requirements related to prudent valuation adjustments of fair valued positions. The draft standards present a methodology to calculate additional valuation adjustments) for the purpose of determining the prudent value of fair valued positions. The consultation proposes a simplified approach, which can be used by institutions to calculate additional value adjustments provided their absolute value of on- and off-balance sheet fair valued assets and liabilities is below €15bn and a core approach, which is intended to provide a consistent framework for determining prudent valuation. Responses are required by 8 October 2013.