+9. Collateral valuation of immovable and movable property
---+178. This section sets out the key elements for collateral valuation of immovable and movable …
---+9.1 Governance, procedures and controls
------+9.1.1 General policy and procedures
---------+179. A credit institution should have in place a written policy and procedures governing the …
---------+180. The policy and procedures should cover the valuation of all immovable and movable property …
---------+181. The policy and procedures should be approved by the management body and should be reviewed at …
------+9.1.2 Monitoring and controls
---------+182. Credit institutions should monitor and review the valuations performed by internal or external …
---------+183. Credit institutions should develop and implement a robust internal quality assurance policy …
---------+184. In addition, the internal audit function should regularly review the consistency and quality …
------+9.1.3 Individual valuation of immovable property and use of indexation
---------+185. Credit institutions should monitor the value of immovable property collateral on a frequent …
---------+186. Indexation or similar methods may be used to monitor the value of a collateral and identify …
---------+187. Indices used to carry out this indexation may be internal or external as long as they are: a) …
---------+188. Valuations and revaluations of immovable property collateral should be performed on an …
---------+189. Competent authorities should define a common threshold for the individual valuation and …
------+9.1.4 Appraisers
---------+190. All valuations of immovable property, including updated valuations, should be performed by an …
---------+191. For the purposes of external appraisals, credit institutions should establish a panel of …
---------+192. Credit institutions should ensure that external appraisers on the panel have adequate and …
---------+193. The credit institution should ensure that each qualified appraiser on the panel: a) is …
---------+194. A panel of appraisers should contain expertise in various areas of the property sector …
---------+195. In order to mitigate any conflict of interest sufficiently, credit institutions should ensure …
---------+196. Credit institutions should ensure adequate rotation of appraisers, i.e. two sequential …
---+9.2 Frequency of valuations
------+197. For prudential purposes, credit institutions should update valuations of all secured exposures …
------+198. The group of collaterals that are subject to individual valuations and revaluations on a …
------+199. For properties with an updated individual valuation that has taken place within the past 12 …
------+200. Credit institutions should carry out more frequent monitoring where the market is subject to …
------+201. Therefore, credit institutions should define criteria in their collateral valuation policy and …
------+202. Credit institutions should have appropriate processes and systems in place to flag outdated …
---+9.3 Valuation methodology
------+9.3.1 General considerations
---------+203. Credit institutions should have defined collateral valuation approaches for each collateral …
---------+204. All immovable property collateral should be valued on the basis of market value or mortgage …
---------+205. For movable property, credit institutions should, in accordance with the requirements of …
---------+206. For movable property, credit institutions should, in accordance with the requirements of …
---------+207. Overall valuations based only on the discounted replacement cost should not be used. For …
---------+208. Property collateral should be valued in accordance with applicable international, European and …
------+9.3.2 Expected future cash flow
---------+209. Credit institutions should estimate discounted cash flow in a prudential manner and in line …
---------+210. Calculation of discounted cash flow should take into account cases where: a) the operating …
---------+211. When the estimation is based on the assumption that the operating cash flow of the borrower …
---------+212. When the estimation is based on the assumption that the operating cash flow of the borrower …
---------+213. In addition to the above liquidation costs, a market price discount, if appropriate, should be …
---------+214. The property price at the time of liquidation should take into account current and expected …
---------+215. Time-to-sale considerations in connection with the disposal of mortgaged properties should …
---------+216. The execution of collateral may include both consensual and non-consensual (forced) …
---------+217. The liquidation cost discount should reflect the manner of collateral execution, i.e. whether …
---------+218. The market price discount should reflect the liquidity of the market and the liquidation …
---------+219. Credit institutions should apply adequate market price discounts for the purposes of IFRS 9 …
---------+220. All credit institutions should develop their own liquidation cost and market price discount …
---+9.4 Further considerations on estimating cash flow from property collateral liquidation
------+221. In estimating cash flow from property collateral liquidation, credit institutions should use …
------+222. When using the value of collateral in assessing the recoverable amount of the exposure, at …
------+223. When the observable market price is used to assess the recoverable amount of the exposure, the …
------+224. Credit institutions should be able to substantiate the assumptions used when assessing the …
---+9.5 Back-testing
------+225. Credit institutions should demonstrate via sound back-testing that the assumptions used when …
------+226. Alternatively, credit institutions using the advanced internal ratings based (A-IRB) approach …
---+9.6 IT database requirements in respect of collateral
------+227. Credit institutions should have databases of transactions to enable the proper assessment …
------+228. These databases should include all the relevant information on properties and other collateral …
---+9.7 Valuation of foreclosed assets
------+229. Credit institutions should strongly consider classifying foreclosed assets as non-current …
------+230. Foreclosed assets received should be valued at the lower of: a) the amount of the financial …
------+231. When fair value is not obtained by reference to an active market but is based on a valuation …
------+232. When credit institutions’ foreclosed assets are still under construction and it is decided to …
------+233. When a foreclosed asset has exceeded the average holding period for similar assets for which …
------+234. The frequency of valuation of foreclosed assets and the applicable procedures should follow …
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9. Collateral valuation of immovable and movable property
9. Collateral valuation of immovable and movable property
1. Forbhreathnú
1.1 Tagairtí
1.2 Ceanglais aitheanta
1.3 Caighdeáin ghaolmhara
2. Ceanglais aitheanta
Ceanglais
| Foinse |
Ceanglas |
3. Caighdeáin ghaolmhara
Caighdeáin
| Foinse |
Ceanglas |
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
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