2026-05-22T01:18:04.409Z http://ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai

ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai:2:4661 2017-01-25T10:12:41Z 2

Realistic evaluation of the ratio: Loan – to – value – the key to minimising the credit risk 2016 336.77 http://ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai/record/2/4661 www.economic-themes.com D. Ranisavljević M. Hadžić Long-term bank loans, regardless of the purpose, as a rule, provide a solid security - mortgage. Mortgaged properties are determined by market value during the loan approval period, but during the repayment period, the value of the real estate changes. It causes that the initially established indicator of coverage of loans with a value of mortgage, LTV ratio, changes which affects the risk of loan repayment. The aim of this paper is to draw attention to the necessity of establishing adequate initial LTV ratios (together with other important ratios), which would nullify any possible risks of changes in real estate prices, loans currency risk, interest rate risk and an increase in the bank's claims through the long foreclosure process. The effects of changes in LTV ratios in different circumstances are analyzed using the case study method. Comparative method analyses changing trends data of LTV ratios for previously approved loans for a seven-year period, comparing the flow of loan balance with the real value of mortgage, for three types of loans. The conclusion is that commercial banks should establish initial LTV for various long-term loan products so that it prevents its growth, taking into account all the factors that affect its increase, thus giving precedence to reducing credit risk, before the attractiveness and accessibility of loan products. article 54 3 449 468 339.137.2 Ekonomske teme