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Legislative overview for the banking sector | Banking: today and tomorrow | June 2023

Banks are awaiting the CJEU judgment. How much will the free CHF loans cost them

 If the judgment is in favour of CHF borrowers, banks’ losses could reach PLN 100 billion. The sector, however, is bracing itself for negative scenarios, says Jacek Jastrzębski, Head of the Polish Financial Supervision Authority (KNF).

Source: Rzeczpospolita

Regulations determine today’s banking

Dialogue and partnership will guide our actions not only in the legal and legislative sphere. I see a great opportunity in a broader opening of the Polish Bank Association’s relations with regulators and supervisors, and also with consumer communities. Added to this is the strengthening of intersectoral relations in the financial market, and cooperation with other chambers, especially within the financial market. The exchange of experience and the development of partnerships with the academic community, including universities and research institutions, are also of key importance, not only from the point of view of banking, but also the functioning of the Polish economy and the quality of life in Poland, emphasises Dr Tadeusz Białek, President of the Polish Bank Association.

Source: Bank.pl

Home loans. ING Bank Śląski has launched WIRON-based mortgages

The Polish Financial Supervision Authority (KNF) expects more banks to introduce mortgages based on the WIRON index. ING Bank Śląski has been the first to take such a step.

Bank Millennium, ING Bank Śląski and Bank BNP Paribas have recently decided to suspend offering mortgages with variable interest rates. The reason is the preparations for the benchmark reform, where WIBOR will be replaced by the WIRON (Warsaw Interest Rate Overnight) index. The banks continue to offer mortgages with periodically fixed interest rates.

Source: TVN24

This is what the new credit holidays may look like: Help for only a select few

Extending credit holidays would mean further costs for banks, making management boards and shareholders unhappy. This would also not be beneficial from a monetary policy perspective, as it would drive up household consumption and contribute to inflationary pressures. The impact would largely depend on the scale of support for borrowers.

Source: Business Insider

Demand for home loans is booming

The Credit Information Bureau (BIK) expects a strong increase in mortgage demand in the second half of the year, following the launch of the government’s subsidy programme.

According to data from BIK, 22,400 people applied for a mortgage in May, which was 7.2% higher than in April and 6% less year-on-year. The average mortgage value applied for was PLN 379,500 – 1% lower than in April and 10.3 % higher than a year earlier. The value of enquiries for mortgages increased year-on-year by 3.7%.

Source: Rzeczpospolita

Banking sector profits up sharply. KNF has released new data

The banking sector’s net profit in the first quarter of 2023 amounted to PLN 8.83 billion, a year-on-year increase of 42%, the Polish Financial Supervision Authority (KNF) said. In March alone, profit amounted to PLN 2.64 billion.

Source: Interia Biznes

Polish Financial Supervision Authority Office (UKNF): New regulatory requirement for banks after 1st January 2024

The Polish Financial Supervision Authority assumes that the new long-term funding requirement will come into force once banks meet the MREL requirement, i.e. after 1st January 2024. The supervisor has not excluded setting intermediate levels for meeting this requirement.

Source: Bankier.pl

Good Practices for “Processing and Protection of Personal Data in the Banking Sector”

On 5 April 2023, the Management Board of the Polish Bank Association adopted the Good Practices for “Processing and Protection of Personal Data in the Banking Sector”. (…) The Polish Bank Association hopes that the document will prove helpful to banking sector entities in the processing of personal data and help customers understand the obligations of controllers and the rights that people using the services of banks and credit registers have in relation to the processing of their personal data.

Source: Polish Bank Association (Związek Banków Polskich)

Interest rates unchanged. The Monetary Policy Council has kept the reference rate at 6.75 %

(…) From October 2021 (from 0.1%) to September 2022, the Monetary Policy Council (RPP) increased interest rates.  In the months following, monetary policy parameters have been kept unchanged.

Source: DGP

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See also

Banking today and tomorrow | An overview of the banking sector | May 2023