secured loans

secured loanss where borrowers to ensure that certain items to banks as collateral to obtain loans. It is a capitalist bank loans in the form of collateral often include marketable securities, government bonds, a variety of stocks, real estate, and goods, bills of lading, warehouse receipt or other proof of ownership document items. If the borrower must be shown with the return, otherwise the bank has the right processor collateral, as a compensation.
secured loans means that the debtor is legally transfer ownership of the property to the creditor, but the creditors do not own property to the property upon repayment of the debt secured, the transfer of ownership of property come to a close, set the purpose of security, the main protection of creditors in debt defaults priority for repayment when the right, and this set the priority claim is based on the physical form into the value of collateral to achieve, so the secured loans is the mortgagor secured loanss all of the physical form is subject to no transfer of ownership and use debt guarantees for the approach as a kind of legal protection act. Borrower legal title to their property as collateral to obtain bank loans as the secured loans loan.
 Savings institutions in the loan portfolio is traditionally a large part of the real estate secured loans, commonly known as secured loanss. secured loans period is usually 15 to 30 years, savings institutions than the average life of debt longer. Thus, the profit will in the interest rate risk exposure. When interest rates rise, savings institutions need to pay a higher interest rate on the depositors, and its long-term investment return rate is relatively fixed. This problem may be the 20th century, 80 savings and loan debacle of the causes. 70 rising interest rates, many banks and savings institutions in the financial position in decline, which makes them more willing to take higher risks in order to obtain higher yields. However, the depositors of the loan portfolio is concerned about the huge risks faced by even less, because the deposit is subject to the Federal Deposit Insurance Corporation (FDIC) or the now defunct Federal Savings and Loan Insurance Corporation (FSLIC) coverage.
 secured loans loans on the one hand goods, instruments, securities and other money into the cash advance, which for the acceleration of capital turnover, and stimulate the reproduction of capitalist expansion, plays a role. However, on the other hand, these loans likely to cause a false social needs, the credit expansion, fueling speculation, thus deepening of capitalist production and consumption under the conditions of the conflict between.