Additional criteria for subjects of assessment that evaluate to calculate the credit risk

The National Bank of Ukraine worked out additional criteria in relation to the subject of evaluation activities, which assess specific types of software to calculate credit exposure.

The Board of the National Bank of Ukraine 23.01.2018 g. adopted Resolution No. 3 "On amendments to some regulatory legal acts of the National Bank of Ukraine» (bank.gov.ua). In particular, section X of the Regulations, "Criteria and principles for admissibility of collateral for credit operations with the objective of mitigating credit risk," item 107, subsection 2, after the sixth paragraph it is planned to complement the new paragraph of such content:

"The Bank has the right to use the market (fair) value of certain types of collateral to the credit exposure calculation, if the subject evaluation, it was determined that simultaneously meets the following criteria:
  • the information about the subject of the evaluation activities included in the national register of evaluators and subjects of evaluation (hereinafter – the State register);
  • the appraiser holds a valid certificate in the areas of property valuation, for which the allowed practices for the assessment of certain types of collateral;
  • practical experience of the subject of evaluation in the market of Ukraine on the valuation of the property not less than five years, of which not less than three years in the areas of assessment of the property of certain types of collateral;
  • the Bank received information from the state property Fund of Ukraine about the fact that the Public registry has no information on the subject of evaluation and evaluators who perform the evaluation: violations of normative-legal acts on property valuation, property rights and professional valuation activities in Ukraine; the decisions of the courts on the facts of non-professional evaluation of the property; violations of restrictions on assessment of property, established by the legislation of Ukraine; review of the valuation report of the property is classified on the basis of: an evaluation report of the property does not meet the requirements of legal acts on valuation of the property is substandard and (or) unprofessional and cannot be used;
  • the Bank received information from the National Bank that the National Bank has no information on the review of the valuation report of the property is classified on the basis of an evaluation report of the property does not meet the requirements of legal acts on valuation of the property is substandard and (or) unprofessional and can not be used»