Prospects for Development of the Market of Mortgage Bonds in Poland
Prospects for Development of the Market of Mortgage Bonds in Poland

Summary/Abstract: This paper concerns the system of financing housing by the banking system.The aim of the study is to analyse the role of covered bonds in the process of financingthe real estate market in Poland. Based on the analysis of the development of the housingmarket, market of mortgages and instruments for long-term financing of mortgages,the study proposed the hypothesis that the system of financing housing supported bythe effective market of covered bonds will allow to avoid the balance gap in the banks.The analysis concerned new loans in Poland and strategies of refinancing of mortgagesgranted by banks. The results of the analysis pointed to the need for revision of thelegislation in order to improve access of banks to additional instruments for long-termfinancing within Basel III standards, EU ordinances and the ordinances by the PolishFinancial Supervision Authority. It was demonstrated that the amendment of the acton covered bonds and mortgage banks should be conducive to the development ofthe market of covered bond through facilitation of refinancing of mortgages with theseinstruments and, consequently, minimization of the risk of losing liquidity by the lenders.

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