International Standards for Valuation of Property for Lending Purposes and Prospects for their Use in Ukraine
Dunas N. V.

Dunas, Nataliia V. (2018) “International Standards for Valuation of Property for Lending Purposes and Prospects for their Use in Ukraine.” The Problems of Economy 4:216–225.
https://doi.org/10.32983/2222-0712-2018-4-216-225

Section: Finance and banking

UDC 336.71 (477):336.77 (477)

Abstract:
The aim of the article is to justify promising areas for the harmonization of national approaches to valuation of property for lending purposes with international and European standards based on comparing their structure and content. The carried out analytical review of the modern mortgage banking market in Ukraine and European countries made it possible to identify key trends, obstacles, and risks of its functioning, in particular, in the aspect of valuation of property for lending purposes. The factors that adversely affect the ability of the mortgage market to be a strong full link between the financial market and the real estate market in Ukraine, as well as to stimulate the country’s socio-economic development in the long term, are substantiated. The author describes foreign initiatives regarding the standardization of property valuation based on a comparative analysis of the structure and methodology of valuation in accordance with the European Valuation Standards EVS-2016 and the International Valuation Standards IVS-2017. There justified promising areas for the harmonization of the national valuation standards with consideration for international approaches to valuation of property for lending purposes, which will provide for eliminating methodological differences in valuation activity and increase its integration in both the commercial real estate market and the mortgage banking market in Ukraine.

Keywords: banks, mortgage lending, valuation of property for lending purposes, International Valuation Standards IVS-2017, European Valuation Standards EVS-2016, market value of property, collateral value of property.

Fig.: 2. Tabl.: 4. Bibl.: 18.

Dunas Nataliia V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Financial Consulting and Banking, Banking University (11 Sichovykh Striltsiv Str., Lviv, 79007, Ukraine)
Email: natadunas28@gmail.com

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