Paragraph 11 Valuation before mandatory write-down of capital or stabilisation action

Section 6E (pre-resolution valuation) is amended as follows.

For subsection (6) substitute—

“(6)

The valuation carried out under this section must follow the methodology specified in—

(a)

any Commission Regulation containing regulatory technical standards adopted by the European Commission under article 36.16 of the recovery and resolution directive, so far as they are retained EU law, or

(b)

technical standards made under subsection (11)(a)”.

For subsection (10) substitute—

“(10)

A provisional valuation carried out under subsection (1) must make provision in respect of additional losses by the bank in accordance with—

(a)

any Commission Regulation containing regulatory technical standards adopted by the European Commission under article 36.16 of the recovery and resolution directive, so far are as they are retained EU law, or

(b)

technical standards made under subsection (11)(b).

(11)

The Bank of England may make technical standards relating to—

(a)

the methodology for assessing the value of the assets and liabilities of a bank for the purposes of a valuation under this section;

(b)

the methodology for calculating and including a buffer for additional losses in the provisional valuation.”.