EBU Single Rulebook Q&A 20 January 2016 2016_2583 Use of valuation to apply resolution tools and to initiate resolution

Why is valuation part of the decision on application of resolution tools instead of the decision initiating resolution? Article 36(4)(a) of Directive 2014/59/EU (BRRD) provides that the purposes of the valuation shall be: (a) to inform the determination of whether the conditions for resolution or the conditions for the write down or conversion of capital instruments are met; Article 36(13)