This Section provides conventional bank licensees with guidance on prudent valuation for positions that are accounted for at fair value, whether they are in the trading book or in the banking book. This guidance is especially important for positions without actual market prices or observable inputs to valuation, as well as less liquid positions which, although they will not be excluded from the trading book solely on grounds of lesser liquidity, raise supervisory concerns about prudent valuation. The valuation guidance set forth below is not intended to require conventional bank licensees to change valuation procedures for financial reporting purposes. The CBB will assess a conventional bank licensee's valuation procedures for consistency with this guidance. One factor in the CBB's assessment of whether a conventional bank licensee must take a valuation adjustment for regulatory purposes under Paragraphs CA-16.1.11A to CA-16.1.13 is the degree of consistency between the conventional bank licensee's valuation procedures and these guidelines.