IMPROVING THE PROCESS OF MONITORING OF IMMOVABLE PROPERTY COLLATERAL

https://doi.org/10.52326/jss.utm.2022.5(2).15

UDC 332.6:336.77(478)

Carolina Volosatîi

Abstract. Mortgage lending is accompanied not only by the risk of default but also by the risk of deterioration, loss of value or reduction in the value of immovable property collateral. One of the main internationally recommended methods to determine whether the parameters of the mortgaged object, the value, the conditions of its maintenance and operation, the operating requirements are in line with the conditions originally laid down in the mortgage contract is Monitoring. The author, analysing the practices of commercial banks, proposes concrete tools to improve the Monitoring mechanism of mortgaged real estate in the conditions of Moldova. This mechanism is recognized as an important tool for credit risk management but is currently not well defined in the national regulations and mortgage policies of credit institutions.

Keywords: Immovable property collateral, credit risk, monitoring, revaluation, statistical models.

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