World Bank2014-03-252014-03-252014-01https://hdl.handle.net/10986/17359This note primarily addresses the mortgage market development objectives, although the regulator is encouraged to consider the use of the macro prudential tools at its disposal for institutional and systemic stability of the mortgage sector as the current portfolio outstanding is large and risky and thus presents a negative performance outlook. The rest of the material is structured as follows. Firstly, brief background information on recent Polish mortgage sector evolution provides context. Secondly, details of certain regulatory initiatives are discussed with the view on potential strengthening. Thirdly, suggestions for modernization of certain features of the current capital market funding framework are provided; specifically on expanding the issuance of Mortgage Covered Bond (MCBs) to the universal banks as well as bringing the framework in line with the latest global best practices.en-USCC BY 3.0 IGOALLOCATION OF CAPITALAMORTIZATIONARBITRAGEASSET BACKED SECURITIESASSET CLASSASSET LIABILITY MANAGEMENTASSET POOLASSET POOLSASSET PRICEASSET PRICESASSET QUALITYAVAILABILITY OF CREDITBAILOUTBALANCE SHEETBALANCE SHEETSBANK INVESTORSBANK LIQUIDITYBANK SUPERVISIONBANKING REGULATIONBANKING SECTORBANKING SYSTEMBANKRUPTCYBONDBOND ISSUANCEBOND ISSUERBOND ISSUERSBONDHOLDERSBONDSBORROWERBROKERSBULLET REPAYMENTSCAPACITY CONSTRAINTSCAPITAL ADEQUACYCAPITAL ALLOCATIONCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL MARKET TRANSACTIONSCAPITAL MARKETSCAPITAL REQUIREMENTSCASH FLOWSCENTRAL BANKCENTRAL BANKSCHECKSCOLLATERAL POOLSCOLLATERALIZATIONCOLLECTIVE INVESTMENTCOMMERCIAL MORTGAGECOMMERCIAL MORTGAGESCONFLICTS OF INTERESTCONSUMER CREDITCONSUMER PROTECTIONCREDIT AGENCYCREDIT INSTITUTIONCREDIT INSTITUTIONSCREDIT MARKETSCREDIT QUALITYCREDIT RATINGCREDIT RATINGSCREDIT RISKCREDIT RISKSCREDITORSCURRENCYCURRENCY RISKDEBTDEBT INSTRUMENTSDEBT SECURITIESDEFAULTSDEPOSITDEPOSIT INSURANCEDEPOSIT TAKING INSTITUTIONSDEPOSITORSDEPOSITSDERIVATIVESDISCLOSURE REQUIREMENTSDUE DILIGENCEECONOMIC DEVELOPMENTEMERGING ECONOMIESEMERGING MARKETSENABLING ENVIRONMENTEXTERNAL CREDIT ENHANCEMENTEXTERNAL CREDIT RATINGSFEDERAL DEPOSIT INSURANCEFINANCIAL CRISISFINANCIAL INSTITUTIONFINANCIAL MARKETSFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFIXED INCOMEFORECLOSUREFORECLOSURE PROCEDURESFOREIGN BANKSFOREIGN EXCHANGEFOREIGN INVESTORSGLOBAL MARKETGROSS DOMESTIC PRODUCTHEDGE FUNDSHOLDINGHOME MORTGAGEHOUSING FINANCEINCOME INSTRUMENTSINDIVIDUAL LOANINFLATIONINFORMATION ASYMMETRYINFORMATION TECHNOLOGYINSTITUTIONAL CAPACITYINSTITUTIONAL DEVELOPMENTINSTITUTIONAL INVESTORSINSTRUMENTINSURANCEINSURANCE CORPORATIONINSURANCE PRODUCTINSURANCE PRODUCTSINTEREST RATEINTEREST RATE CALCULATIONINTEREST RATE SWAPSINTEREST RATE VOLATILITYINTEREST RATESINTERNATIONAL BANKINTERNATIONAL INVESTORSINVESTMENT REGIMEINVESTOR CONFIDENCEINVESTOR INTERESTIRREGULAR INCOMESISSUANCELEGAL AGREEMENTSLEGAL FRAMEWORKLEGAL PROVISIONSLEGISLATIVE FRAMEWORKLENDERLENDERSLEVEL OF RISKSLIABILITYLIABILITY COMPOSITIONLIQUID ASSETSLIQUIDITYLIQUIDITY RATIOSLIQUIDITY RISKLOANLOAN AMOUNTLOAN PORTFOLIOSLOAN QUALITYLOAN STOCKLOAN TERMLOAN TERMSLOCAL CURRENCYLONG-TERM CAPITALLONG-TERM INVESTORSMARKET ACCESSMARKET DEVELOPMENTMARKET DISTORTIONSMARKET INFRASTRUCTUREMARKET INTERMEDIARYMARKET MAKINGMARKET PARTICIPANTSMARKET PRACTICESMARKET RISKMARKET SHAREMARKET SIZEMARKET STABILITYMARKET STRUCTUREMARKET VALUEMARKETABLE SECURITIESMATURITIESMATURITYMORAL HAZARDMORTGAGEMORTGAGE FINANCEMORTGAGE LOANMORTGAGE LOANSMORTGAGE MARKETMORTGAGE MARKETSMORTGAGESNON-PERFORMING LOANNON-PERFORMING LOANSNPLPENSIONPENSION FUNDSPORTFOLIOPORTFOLIO ALLOCATIONSPORTFOLIO DIVERSIFICATIONPORTFOLIO MANAGEMENTPORTFOLIO PERFORMANCEPORTFOLIO RISKPORTFOLIO RISK MANAGEMENTPORTFOLIO RISKSPORTFOLIOSPREPAYMENTPRICE FORMATIONPROVISIONING RULESPRUDENTIAL REGULATIONSREAL ESTATE COLLATERALREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREGULATORY OVERSIGHTREGULATORY PRACTICESREPAYMENTREPAYMENT CAPACITYREPORESERVESRESIDENTIAL MORTGAGERESIDENTIAL MORTGAGESRETURNSRISK FACTORSRISK MANAGEMENTRISK PROFILERISKY ASSETSSECONDARY TRADINGSHORT-TERM DEPOSITSOLVENCYSOVEREIGN DEBTSOVEREIGN RATINGSOVEREIGN RISKSTOCK EXCHANGESWAPTAXTIMELY PAYMENTTRANCHESTRANSACTIONTRANSPARENCYTRUSTEEUNDERLYING ASSETSUNDERLYING MORTGAGESUNIVERSAL BANKSVALUATION10.1596/17359