Bank loans are something quite common in the modern world. Credits are requested by both individuals and large businesses for all kinds of reasons. However, this common practice is considered one of the main reasons for the financial crisis that occurred in 2008 (Taylor, 2009). The explanation offered by experts is that the problem was that as the number of loans increased, global savings fell, while long-term interest rates remained low (Taylor, 2009, p. 4). . The recession brought immense changes in terms of lending policies and a 37% decrease was recorded in loans to large businesses and institutions (Ivashina and Scharfstein, 2010, pp. 319). This radical change is referred to as a credit crunch – a reduced ability of banks to extend 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 answers to this new situation was found in covered bonds, used by some of the world's largest banks, such as the Bank of Sweden (Swedbank, 2014). What are covered bonds? According to the European Covered Bond Council, covered bonds are defined as follows (European Covered Bond Council, 2014): Covered bonds are debt instruments guaranteed by a cover pool of mortgage loans (secured assets) or public sector debt over which investors have a preferential right in the event of default. While the nature of this privilege, as well as other security elements (eligibility and asset coverage, bankruptcy protection and regulation) depend on the specific framework in which a covered bond is issued, it is the security aspect that is common to all covered bonds. bonds.The covered bonds were mainly related to middle of paper ......es which will allow them to examine the covered securities in more detail.4. Guarantors of registered covered bonds benefit from the ability to have a broader base of financial specialists, as some global tycoons are prevented from obtaining bonds issued under a non-authoritative structure.5. Funders also benefit from access to a source of grant options. As a source of financing for banks, covered bonds help increase the level of stability of the financial system.7. It can be deduced from the previous point that a stable financial system represents the basis of the stable economy of any country. From the previous list, it can be seen that the introduction of covered bond schemes is beneficial to several groups. This does not exclude the benefits for banks including the increase in margins.