News

IM Valora has been selected, through public tender, to provide MERCASA financial advisory services in relation to its 48.63% shareholding in Mercamadrid. Specifically, IM Valora will advise MERCASA in its negotiations with the Madrid City Council to remove the time limit established by Mercamadrid's statutes. According to it, 50 years after its incorporation, all assets and liabilities of Mercamadrid will automatically return to the City Council with no compensation. IM Valora will also assess the proposals that may emerge during the course of these negotiations.

The report focuses on the 2023 resolution planning cycle and sets out the progress made by LSIs in terms of resolvability and the build-up of MREL (the "minimum requirement for own funds and eligible liabilities"). This magnitude is the amount that institutions must hold for possible loss absorption and, if necessary, conversion to capital, so as to allow the implementation of the resolution tool determined by the authorities to be the most appropriate.

All LSIs required to comply with their final MREL targets as of 1 January 2024 met their obligations, while some other had extended transitional periods. NRAs continue to phase in and proportionately implement the SRB's "Expectations for Banks" guidelines, including its resolvability assessment (heatmap) approach. At this stage, LSIs show good progress on the resolvability capabilities prioritised by their respective NRAs in 2022-2023.

In 2023-2024, NRAs and the SRB continued to work together to strengthen LSIs crisis preparedness and management through exchanging best practices and developing procedures.

By appointment of FROB, IM Valora is an independent valuer for LSIs in resolution, a position achieved in 2020 through a public tender among the main consulting firms. In 2023, FROB renewed this designation for an additional three-year term.

For more information: https://www.srb.europa.eu/en/content/srb-publishes-second-report-smaller-banks-banking-union