The Royal Institution of Chartered Surveyors (RICS) has called for banks to adopt the property profession’s valuation standards, instead of using their own standards.
The Basel Committee on Banking Supervision, an organisation which represents the 10 major banking countries, has advocated setting up its own standards for valuing property when offering bank loans.
John Rich, chairman of the RICS working group on the Basel Accord, said: “The RICS has been a world leader in the development of valuation standards. We recommend strongly that this internationally accepted definition of Market Value replaces the definition currently employed by the NBCA. It would be better if the banking community adopted the internationally accepted valuation standards and definition of Market Value contained in the RICS’s Red Book.”
The RICS was responding to the Basel Accord’s consultation on setting up its own valuation standards, The New Basel Capital Accord (NBCA), published in January.
EGi News 01/06/01
