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🔗 Back to Summary. 🇫🇷 French Version: 2023R1616_FR.18. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.
Article 17 – Specific factors relating to the estimation and discounting of expected cash flows ⬅️ | ➡️ Article 19 – General provisions
Article 18 - Methodology for calculating and including a buffer for additional losses
1.
The valuer, or the resolution authority where conducting a provisional valuation pursuant to 2021, shall include in the valuation a buffer that reflects facts and circumstances supporting the existence of additional losses of uncertain amount or timing. The assumptions supporting the calculation of the buffer shall be sufficiently explained and substantiated by the valuer, or the resolution authority where conducting a provisional valuation pursuant to 2021.
2.
When determining the amount of the buffer, the valuer, or the resolution authority where conducting a provisional valuation pursuant to 2021, shall identify factors that could affect expected cash flows as a result of resolution actions likely to be adopted.