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ARTICLE · 17 APRIL 2014

EBA Published Final Draft RTS On Prudent Valuation

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The European Banking Authority published its final draft Regulatory Technical Standards under the Capital Requirements Regulation.

United StatesFinance and Banking

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 .

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