195. In order to mitigate any conflict of interest sufficiently, credit institutions should ensure …

In order to mitigate any conflict of interest sufficiently, credit institutions should ensure that all internal and external appraisers who are going to carry out the actual appraisal of a given property and their first-degree relatives meet the following requirements:

• a) They are not involved in the loan processing, loan decision or credit underwriting process.
• b) They are not guided or influenced by the borrower’s creditworthiness.
• c) They do not have an actual or potential, current or prospective conflict of interest regarding the result of the valuation.
• d) They do not have an interest in the property.
• e) They are not a connected person to either the buyer or the seller of the property.
• f) They provide an impartial, clear, transparent and objective valuation report.
• g) The fee they receive is not linked to the result of the valuation.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/