United States: EBA Published Final Draft RTS On Prudent Valuation

On 31 March 2014, the European Banking Authority (the "EBA") published its final draft Regulatory Technical Standards ("RTS") under the Capital Requirements Regulation ("CRR") which set out the requirements on prudent valuation adjustments of fair valued positions. The final draft RTS put forward a methodology to calculate additional valuation adjustments, and present two approaches for the implementation of the prudent valuation requirements under the CRR: a Simplified Approach and a Core Approach.

The final draft RTS are available at: http://www.eba.europa.eu/documents/10180/642449/EBA-RTS-2014-06+RTS+on+Prudent+Valuation.pdf .

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.