RTS: Valuation methodologies for difference in treatment in resolution (Directive 2014/59/EU)

This regulation establishes technical standards for valuing the 'difference in treatment' when a bank fails and enters resolution. It ensures that the process of calculating the value of assets and liabilities is consistent and fair, preventing arbitrary decisions during the restructuring of a failing financial institution.

This primarily affects large banking institutions and financial regulators. It ensures that shareholders and creditors are treated equitably based on clear, standardized valuation methodologies during a bank resolution process.