Mortgage bonds as a source of financing housing real estate in Poland

The relatively small equity of mortgage banks that has been created in Poland for the past twelwe years does not allow refinancing of housing real estate credits with the use of mortgage bonds. Nonetheless, there is more and more imminent threat of liquidity problems amongst the universal banks that have granted mortgage loans for financing housing real estate. Thus, it is expected to see the emergence of a system of issuing bonds to improve financial standing of those banks. The process of development of mortgage banking raising funds on capital markets through the issue of bonds has been already commenced in Poland. The paper presents the essence and the legal groundwork for that process, as well as the volume and structure of bonds issue on the background of refinancing mortgage loans with bonds in the selected countries of the European Union. The paper includes a discussion of security principles, and presents the main issuers of bonds. Due to the attractiveness of that financial instrument the discussion includes a presentation of the bond market in Poland, and its main investors. In conclusion, the author presents prerequisites to encouraging and accelerating that type of financing which will also increase credibility of that security on the financial market.