Position Paper | Prudent Value: Navigating Regulatory Changes and Data Integrity Challenges

The Prudent Valuation Framework, established through the Capital Requirements Regulation (CRR) in the aftermath of the Global Financial Crisis of 2007/2008, was designed to ensure the conservative valuation of assets and liabilities by financial institutions.

Rooted in Article 105(14) of the CRR, this framework was further refined through Regulatory Technical Standards (RTS) on prudent valuation.

On January 16, 2024, the European Banking Authority (EBA) released a consultation paper proposing amendments to these RTS, reflecting ongoing efforts to adapt to new market realities and enhance regulatory oversight.

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