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The valuation is of key importance for the execution of the resolution: its role in informing the resolution decision, the purpose and general requirements are stated in the Law on Resolution of Credit Institutions and further specified in the enabling regulations.

In this context, the Law on Resolution of Credit Institutions stipulates that independent valuations are performed before resolution, according to Article 44 paragraph (3) of the Law on Resolution of Credit Institutions, and after the resolution, according to Article 138 paragraph (1) of the Law on Resolution of Credit Institutions. In accordance with Article 44 paragraph (3) of the Law on Resolution of Credit Institutions, the pre-resolution assessment must:

1. inform on the determination of whether the conditions for resolution or impairment or conversion of equity instruments are met (Valuation 1); 
2. when the Central Bank determines that the credit institution meets these conditions, it provides information on the resolution measure to be adopted, the level of possible impairment or conversion of equity instruments and other decisions on the implementation of resolution instruments (Valuation 2); 
3. if the liabilities arising from derivatives are subject to write down or conversion, it must also meet the special assessment requirements set out in Article 100 of the Law on Resolution of Credit Institutions;
4. determine whether the shareholders and / or creditors of the credit institution would have had better treatment if bankruptcy proceedings have been opened in the credit institution, than the treatment they received in the resolution, i.e. whether the principle that no creditor has inferior treatment has been respected. (Valuation 3).

In order to ensure harmonised approaches to the performance of these assessments, the Law on Resolution of Credit Institutions and enabling regulations define the determination of the criteria on which valuations must be based for the purposes of points (a) and (b) and the definition of valuation methodology according to points (c) and (d). The Law on Resolution of Credit Institutions and enabling regulations related to valuation are aligned with the EU regulatory framework for valuation in resolution, which aims to promote the consistent application of valuation throughout the European Union.