European Finance Observatory

Concept · Brief definitionRelevant to you

Collateral valuation

Collateral valuation sets the value of assets pledged to secure a loan, such as property, securities or cash, and keeps it up to date. EU rules require independent valuers for property and regular revaluation, and lenders apply haircuts for price falls and costs of sale.

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Roles that need it

This is a brief definition. A full explanation with a worked example is being written.

Skills it belongs to

Sources

Updated 31 Oct 2026.