Bank loans

I take a loan from a bank. They make the judgement if I can have it, and the risk of doing so..

I buy a house at the market rate, I take a risk that the market will not fall.

But it does, and now the value of the asset (belonging to the bank) is less than its value. They tell me I am in negative equity, but it is really the bank that should write down its asset value.

Risk

Who takes the risk? As things stand to day I take all the risk. I cannot sell the house at a price to payback the loan. The bank takes no risk as they demand the full payback of the loan, even though they in effect own the house. (Well they do own it, if I default they take it).

Solution

So what should happen is that the value of the banks assets should go down with the market so that they take the risk on they asset they own.

Isn't that reasonable?