MORTGAGE ON PROPERTY AS A CRUCIAL ELEMENT OF REDUCING LOAN RISK

The purpose of the article is to indicate a role and meaning of banks in economic and social aspect. The source of data used for presenting the assumed aim are materials, specialist literature related to the elaboration topic. Bank loan is a main source of obtaining financial means in a banking system. Agricultural activity loans make a significant group among bank charges. Interest and loan commission proceeds have the biggest influence on the bank's income. They are subject to most risk at the same time. Limiting the loan risk has an essential meaning for bank's safety and is expressed in assuring an appropriate quality of a loan wallet as well as establishing loan protection in a form of a mortgage which will be adequate to the risk of a singular transaction.