Covered bonds are a way for banks and financial institutions to bring in more funds. By having the legislation there, they can package their mortgages. Basically, they're keeping those mortgages. It's not like they're selling them into mortgage-backed securities. They're issuing a bond that's backed by those mortgages, and bringing in funds.
The fact that they can't put insured loans in there might mean they have to pay a little more interest on them, but it will bring in additional funds that they can then use for lending, including lending for mortgages. I think overall it's a positive thing. As I say, some people can't invest in those unless there is government legislation.