English
Banks which are active on the domestic market may need to adjust their current evaluation methods, after the Romanian Central Bank found that evaluation methods differ from one lender to the next, depending on the country that their parent bank resides in or on the decisions made by the management.
Therefore, the National Association of Romanian Evaluators (ANEVAR) has drawn up a guide "concerning the evaluation of loan guarantees", which may in time become mandatory for all lenders. The guide was drawn up at the initiative of the NBR, but was also approved by the Romanian Banking Association (ARB) and the Romanian Chamber of Financial Auditors (CAFR).
"The novelty of the guidelines comes from the fact that banks can use statistics for evaluating the loan portfolio", said Filip Stoica, the chairman of the ANEVAR, who added: "Instead of evaluating piece by piece every collateral in the banks" portfolio, evaluators can make a global assessment, by selecting a typical sample of the collateral portfolio, by reviewing the sample and extending the conclusions to the entire portfolio. The statistical evaluation has a margin for error. If the error margin is acceptable, then the evaluation is very good". The chairman of the ANEVAR also explained that the introduction of the statistics based method in the evaluation of the loan collateral portfolio was needed and because it had become very difficult for some banks to evaluate their collaterals on an individual basis.
The creation of this guide involved banking experts, evaluators (both independent and employed by banks) as well as theorists.
"The oversight of the NBR has uncovered certain aspects which prove that in some cases, some of the opinions of bank evaluators have been altered.
The objective of the guide is to create a unified model for evaluating loan collaterals because until now there existed significant differences between the methods used by the various banks", the chairman of the ANEVAR said.
Adrian Vascu, the former chairman of the Association of Evaluators, consider that banks will reevaluate their collateral portfolios at the end of 2010, given the evolution of the real estate market this year.
"The accounting norms state that evaluations need to be performed regularly. I think banks will reevaluate their loan guarantees at the end of 2010 as well, because we need to see how their portfolios evolved in 2010, when the real estate market evolved in a different manner than it did in 2009", Vascu said.
The guidelines created by the ANEVAR presents the three stages of the evaluation process: upon the granting of the loan, during its course and in the foreclosure stage. The guide was adopted by way of a Decision of the Board of Directors of the ANEVAR and all the members of the Association involved in the loan collateral evaluation process will be required to comply with its terms, the officials of the ANEVAR said yesterday.
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