The bank wants to give you an incentive to pay back the loan. If they did not hold your assets as collateral, you could simply fail to pay back the loan and really not lose anything other than your credit score. Many borrowers already have tarnished credit scores, so that is rarely enough incentive to base a loan on.
I would put this into your own words considering I copied and pasted it. Other than that I hope this helps!
Answer:
Plagues, sickness and some cities didn't have the money to regulate trade.
Explanation:
What happened was it rained a lot slaves ran away and then it dryed out
