CREDIT RISKS MITIGATION AND BANKING COLLATERAL VALUATION IN UKRAINE

  • V. Yakubovsky Institute of International Relations, Taras Shevchenko National University of Kyiv

Abstract








Abstracts. Contemporary international requirements and mechanisms which are oriented to credit risks abatement and assurance of financial sector functioning are reviewed with particulars of their implementation in national banking sector. As is demonstrated general reasons for the new generation of regulatory measures of crisis resilience in financial sector are grown up from the last global economy crisis which demonstrated vulnerability of the main credit institutions and their failure to absorb considerable financial market fluctuations. To improve financial systems stability is the main goal of measures and instruments proposed by the international Basel Committee on Banking Supervision as well as Directives and Regulations of the European Union, which should be implemented at the national level. One of the underlining aspect in this new international regulatory documents is recognition of the assets valuation key role in the whole methodology of risks mitigation. Main approaches to consider time effect on assets valuation results are analyzed in this context. Based on these last international regulatory documents in this direction special Resolution No. 351of the National Bank of Ukraine has been issued for banks credit risks assessment. Much less attention in this Resolution is given to assets valuation which is linked to some extent with outdated national valuation standards. This situation requires active measures to be provided for updating basic national documents in this area as is underlined. Key words: credit risks, credit institutions, banking collateral, assets valuation, risks mitigation, international regulations, valuation approaches, time effect, valuation methodology.


Author Biography

V. Yakubovsky , Institute of International Relations, Taras Shevchenko National University of Kyiv

Doctor of technical sciences, professor of the international business department



Published
2020-06-23