Updating the value of mortgage collateral in Polish banks
Updating the value of mortgage collateral in Polish banks

Summary/Abstract: Polish banks closely monitor the value of their loan portfolios, their practices with respect to keeping stock of the value of mortgage collaterals raise certain doubts. Since banks have the ability to take stock of the current loan values, then what keeps them from taking stock of the current values of all corresponding collaterals, particularly in relation to highvalue, long-term loans for real estate investments? This paper aims at presenting the idea of a mass revaluation of property and its potential for the banking sector. The author provides a brief analysis of the situation of the banking sector in terms of value and volume of loan portfolios, as well as in terms of other factors that may prove beneficial or detrimental to the idea of mass valuation in the banking sector. The results of the analysis are evidence to the size of the market, but also to the need to control its practices in response to the relatively frequent changes in the value of mortgage collateral.

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