IMPLEMENTATION OF PRUDENTIAL VALUE IN REAL ESTATE APPRAISAL

Abstract

One of the most important economic conditions for the qualitative transformation of Ukraine into the European economic space, equal integration into the world economic environment is the requirement of the standards of the Basel Committee on Banking Supervision regarding the introduction and determination of the prudential (precautionary) value of the company's assets from the point of view of securing them for the obligations of companies to banks institutions.

The paper substantiates the expediency of introducing the practice of the European Union countries into the domestic practice of evaluating alternative principles of prudential restrictions and the principles of evaluating their effectiveness based on the study of the main goals and principles of "Basel III" in the evaluation of the company's value. In this regard, the introduction of a universal method of determining the prudential value of real estate is proposed.

One of the most important goals of the introduction of "Basel III" in real estate valuation in Ukraine is to bring banking regulation and supervision to international valuation standards, increase its ability to withstand modern challenges in the conditions of martial law.

This process also requires significant thorough, complex preparatory work on the part of state bodies and, first of all, on the part of the National Bank of Ukraine, which is entrusted with the functions of state regulation of banking activity. This preparatory work includes not only making changes to the regulatory framework, but also improving and changing the principles of regulation and supervision, developing methodological principles for assessing the effectiveness of Basel III, the riskiness of the domestic banking system, etc.

At the same time, the process of implementing the Basel III recommendations in real estate valuation should not be separate and should be carried out within the strategic objectives and goals of the development of domestic independent valuation. And this aspect is the most relevant for further study and research.

In this regard, the authors analyzed several approaches to determining the prudential value, which is not the market, although it may coincide with it. A set of requirements for the formation of the prudential value is proposed, compliance with which allows the bank to take into account the determined value of the property when calculating credit risk.

The work explores alternative concepts of the content of prudential restrictions on assessment, analyzes the types of assessments based on supervision processes for which prudential value is relevant, and also substantiates the expediency of complying with prudential requirements through the system of supervision, review and verification of the assessor.