GBIC Comments on EBA Consultation Paper (EBA/CP/2024/01) Prudent Valuation Framework

Prudent valuation rules must not be unduly expanded. Institutions must make additional valuation adjustments for all financial instruments measured at fair value. The consultation document submitted by the EBA is intended to reduce discrepancies observed in practice. The GBIC is concerned that the current complexity in the documentation and processes could increase further as a result of the EBA’s proposals.