IMPROVING THE PRACTICE OF EVALUATING COLLATERAL SECURITY FOR BANK LOANS (A CASE STUDY OF “HAMKORBANK” JSCB)

Abstract

This study focuses on improving the practice of evaluating collateral
security for bank loans using “Hamkorbank” JSCB as a case study. The
effectiveness of collateral assessment plays a crucial role in ensuring financial
stability, reducing credit risks, and maintaining the quality of loan portfolios in
commercial banks. The research analyzes the existing procedures and criteria used
by “Hamkorbank” in assessing collateral, identifies the key challenges faced
during the valuation process, and explores international best practices in collateral
management. Based on the findings, the paper proposes a set of practical
recommendations to enhance transparency, accuracy, and efficiency in collateral
evaluation. These recommendations include the adoption of modern digital
valuation tools, regular training of credit officers, the introduction of unified
valuation standards, and the integration of independent appraisal services. The
proposed measures are expected to strengthen risk management frameworks,
optimize decision-making in lending, and improve the overall sustainability of the
bank’s credit operations