Mass evaluation of the collateral portfolio: problems and solutions
Abstract. A timely understanding of the collateral security level of the loan portfolio can warn against the risks of the capital adequacy loss of a credit institution. The specifics of managing the value of a collateral portfolio from the position of updating the value of its elements (collateral items) are studied. The possibility of applying mass valuation methods in relation to the collateral portfolio of a commercial bank is analyzed. An approach to the mass assessment of the value of the collateral portfolio is proposed and an algorithm for its implementation in the value management system of the collateral portfolio of a commercial bank is presented.
Keywords: valuation of the collateral portfolio, mass valuation of the collateral, problems of valuation of the collateral, management of the value of the collateral portfolio
Highlights:
♦ the problems of using methods of mass evaluation of the collateral portfolio value are identified;
♦ the analysis of the mass evaluation methods application of the collateral portfolio in legal and economic aspects is presented;
♦ the author`s understanding of improving the value management system of the collateral portfolio is given.
Alexander A. Tishchenko - Institute of Economics of the Ural Branch of the Russian Academy of Sciences, Ekaterinburg, Russia