Bank loans are something quite common in the modern world. Credits are requested by both individuals and large companies for all types of purposes. However, this common practice is seen as one of the main reasons for the financial crisis that occurred in 2008 (Taylor, 2009). The explanation offered by experts is that the problem lay in the fact that the number of credits was increasing, global savings were decreasing, while long-term interest rates remained low (Taylor, 2009, pp. 4). The recession brought huge changes in terms of lending policies and a 37% decrease was recorded regarding lending to large corporations and institutions (Ivashina and Scharfstein, 2010, pp. 319). This dramatic change is labeled the credit crunch – the reduced ability of banks to grant credit. Even the expression “credit crunch” is not new, it dates back to the period of the Great Depression (Mizen, 2008, pp. 531). One of the responses to the new situation was found in covered bonds, used by some of the largest banks in the world, such as the Bank of Sweden (Swedbank, 2014). What are covered bonds? According to the European Covered Bond Council, covered bonds Covered bonds are defined as (European Covered Bond Council, 2014): Covered bonds are debt instruments backed by a backing pool of mortgages (property as collateral) or debt of the public sector to which investors have a preferential right in the event of default. While the nature of this preferential credit, as well as other security features (asset eligibility and coverage, bankruptcy remoteness and regulation) depends on the specific framework in which a covered bond is issued, it is the security aspect that is common to all covered bonds. bonds.Secured bonds were mainly linked to the...... medium of paper......es which will allow them to further examine the secured securities.4. Registered secured bond guarantors benefit from the ability to acquire a broader financial specialist base as some global tycoons are restricted from obtaining bonds issued under a non-authoritative structure. Supporters similarly benefit from access to a source of grant options. As a source of financing for banks, covered bonds contribute to increasing the level of stability of the financial system.7. From the previous point it can be deduced that a stable financial system represents the basis for the stability of the economy of any country. According to the above list, it can be seen that the introduction of covered bond systems is beneficial for different groups. This does not exclude benefits for banks including increased margins.