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Collateral Valuation in the CESEE Region

June 5, 2018

World Bank Group Report


Prepared by Karlis Bauze, Senior Financial Sector Specialist, FinSAC, The World Bank Group

The consequences of the global financial crisis clearly demonstrated that the valuation of assets pledged as collateral against loans is a very important, and often overlooked, aspect of prudential regulation. A proper collateral valuation plays a crucial role in the lending and borrowing processes and is important during many stages of NPL resolution. Imprudent collateral valuation practices leave banks with provisioning shortfalls and additional losses when a loan becomes non-performing.

This document may be used as good practice guidance to assist national authorities review existing collateral valuation practices or introduce improvements by implementing good international practice.

You will find the complete report at the following link:

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The World Bank Group

The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. Its five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.

* The International Bank for Reconstruction and Developmemnt (IBRD)

* The International Development Association (IDA)

* The International Finance Coroporation (IFC)

* The Multilateral Investment Guarantee Agency

* The International Centre for Settlement of Investment Disputes