Shinkin bank

The term mortgage-credit institution is a collective term for public and private mortgage lenders. It involves specialized banks to finance long -term investment from the public and from businesses and consumers.

Mortgage banks provide long-term loans that are secured by liens, such as mortgage and mortgage. In addition, they operate with federal, state and municipalities, the municipal lending business.

The funding obtain real banks by issuing mortgage bonds and public-sector Pfandbriefe, hence the long -term lending at fixed interest rates is basically just a long-term fundraising over.

For private and public mortgage banks each specific legal provisions apply. After that they will be permitted only on the number of transactions of mortgage and municipal loans only of topical catalog. The specialist bank principle is to limit the risk inherent in lending and other banking transactions. This contrasts with the privilege to issue mortgage bonds.