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Assessment of the Conditions for Concluding Loan Portfolio Purchase and Sale Agreements between Related Parties as a Tool for Prudential Supervision of the National Regulator

Journal: Quarterly Scientific Journal "Economic Herald of the Donbas" (Vol.64, No. 2)

Publication Date:

Authors : ;

Page : 123-128

Keywords : valuation; market value; market conditions; loan portfolio; related parties; bank;

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Abstract

The article proposes to use the market value of the loan portfolio as a criterion for compliance with the terms of its purchase and sale agreements, between related parties, the normal market and use it as a tool in the supervision of the national regulator. The developed methodological support for assessing the compliance of the conditions for concluding purchase and sale agreements of loan portfolios, between related parties, normal market conditions is based on the characteristics of the elements, properties and features of valuation as an economic category. The proposed algorithm for assessing the terms of conclusion between related parties of purchase and sale of loan portfolios for their compliance with normal market conditions allows to take into account the essential characteristics of loans and complies with current legislation of Ukraine governing banking. On the example of contingent portfolios of cash and consumer loans, the stages of forecasting cash flows from the payment of outstanding balance of principal, interest, commissions and other payments on debt service, as well as income from the sale of default loans are disclosed.

Last modified: 2021-11-01 22:33:58