Regulatory Alerts2015-12-09
Decision on Detailed Requirements and Manner of Independent Valuation of Assets and Liabilities of a Bank Aimed at Determining Whether the Conditions for Bank Resolution are Met
The Executive Board of the National Bank of Serbia issued this Decision to establish the detailed requirements and procedures for conducting independent valuations of bank assets and liabilities during resolution scenarios. The regulation mandates that independent appraisers assess whether conditions for write-down and conversion of capital are met by applying prudent methodologies that account for macroeconomic factors, cash flow expectations, and potential resolution tools. It further specifies strict independence criteria for appraisers and outlines the methodology for provisional valuations, including the requirement to include buffers for additional losses based on identified risks.
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