Author information:
Gabriella Grosz: Magyar Nemzeti Bank, Economic Analyst. E-mail: groszg@mnb.hu
Evelyn Herbert: Magyar Nemzeti Bank, Analyst. E-mail: herberte@mnb.hu
Gábor Izsák: Magyar Nemzeti Bank, Lawyer. E-mail: izsakg@mnb.hu
Katinka Szász: Magyar Nemzeti Bank, Legal Referent. E-mail: szaszk@mnb.hu
Abstract:
The valuation of real estate collateral is a long-established area of the lending process that is currently undergoing increasingly dynamic development and in which the use of statistical valuation methods is becoming more and more common instead of on-site valuations. The legal conditions for this have been created by amendments to European and national legislation in the past year, but for the method to be truly widely used and operational and to ensure the accuracy of the resulting valuations, access to detailed, accurate, up-to-date and regularly checked data on real estate must be also created. As the databases currently available for Hungarian real estate are very fragmented, in our study, we propose to create a central database that would provide a uniform, up-to-date set of data, by harmonising the existing separate databases. Such a database would help create a level playing field in the market and automate data transfer in a cost-effective, fast and reliable manner. This would greatly facilitate the uptake of statistical valuation methods, supporting the further spread of digitalisation, increasing banking competition, speeding up administration and reducing the cost of lending for all parties.
Cite as (APA):
Grosz, G., Herbert, E., Izsák, G., & Szász, K. (2021). Issues Relating to the Creation of a Central Database to Support Statistical Property Valuations. Financial and Economic Review, 20(4), 86–117. https://doi.org/10.33893/FER.20.4.86117
Column:
Study
Journal of Economic Literature (JEL) codes:
G21, G28, G32, G51, O33
Keywords:
automation, digitalisation, collateral valuation, mortgage lending, financial regulation, statistical valuation
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