Banks are by their very nature exposed to many diverse and serious threats. The legislators have acknowledged risk as an inherent element of banking operations. To achieve a satisfactory return on capital and assets, a bank must constantly assume risk, the greater, the greater the return on the bank's activities.

The structure of Polish banks' balance sheets as well as the analysis of bankruptcy cases in literature unequivocally point to credit risk as the key threat. Credit risk tends to be passive and active at the same time.

Active credit risk, undoubtedly the greatest of the dangers, refers to, among others, the loss of principal, interest and collateral. Banks should measure this risk in an effort to restrict it.

Since credit risk is unavoidable and its negative impact can jeopardise the very existence of a bank, it is necessary to create effective mechanisms for its reduction. Such mechanisms are developed by both by the state authorities, through general regulations, and the individual banks, which rely on their own methods of credit risk management. These should be geared to reducing credit risk by developing an optimal credit strategy and policy as well as highly efficient procedures (in particular, credit scoring methods).

Both external instruments of credit risk reduction and internal regulations (which are in place in the bigger banks) emphasise the importance of additional collateral on the credits extended.

Banks attach a varying degree of weight to additional collaterals; all, however, consider them an important instrument of credit risk reduction.

In reality, additional collaterals often fail to fulfil their role; the recovery ratio on them is a mere 50%. It would therefore be wrong to claim that additional collaterals lead to a significant reduction of credit risk. The best security on a loan granted is the sound financial position of the beneficiary.

The above presentation of the weaknesses of claims transfer as additional collateral suggests it should be treated only as a complementary, possibly ineffective method of reducing credit risk (as it allows for only a partial recovery of the funds involved). It can help make a credit arrangement more realistic; but whether it is used at all or not should depend on how effective it is assessed to be.

The authors' intention in presenting the downsides of claims transfers (assignments) is to make bankers fully aware of the threats involved in them, so that they can be avoided whenever possible.