Legislative overview of the banking sector | Banking: today and tomorrow | November 2022

9 November 2022 | Banking today and tomorrow, Knowledge, News

New Recommendation A

On 19 October 2022, the Polish Financial Supervision Authority (KNF) adopted Recommendation A on derivative activity risk management by banks, which have replaced the previous 2010 recommendation.

Recommendation A provides a set of good practices concerning the duties and responsibilities of management and supervisory boards, the identification and assessment of risks, monitoring, internal control systems, and the control and reporting of risks in the area covered by the Recommendation.

Source: Polish Financial Supervision Authority

Anti-Usury Act has been signed by the President

According to its authors, the Act is intended to curb lending abuse by loan companies. Among other things, the amendments make the granting of consumer loans conditional on a positive assessment of creditworthiness, and introduce consequences for granting such loans in the event of a negative assessment.

Source: Money.pl

Statement of the KNF Office on real estate developers’ demands regarding creditworthiness assessment

According to the statement published by the KNF Office on Tuesday, developers’ demands for a loosening of the prudential policy are groundless; if such demands are motivated by a genuine concern for the availability of housing for young Poles, they can adjust their own margin policy.

Source: Bankier.pl

Creditworthiness has hit the bottom – month-to-month deterioration in every bank

Although interest rates did not change in October, creditworthiness continues to shrink regardless. Bankier.pl’s analysis reveals that the amount of financing available to families with an income of PLN 13,000 per month was lower by PLN 16,000 on average than in September.

Source: Bankier.pl

Banks suffering record-breaking losses – why is it so and how long will it last?

Polish banks have not recorded losses as large as in Q3 for years, with credit holiday provisions, settlement agreements and disputes with CHF credit holders being the main reasons. The situation is expected to improve in the quarters to come, although the sector fears that politicians in an election year will again want to continue putting the squeeze on the banking sector.

Source: Polityka

Over one million customers on credit holidays

Not all eligible borrowers have benefited from credit holidays so far. This is good news for the banks, but the situation may change as credit costs increase.

BIK’s analyses show that the statutory suspension of mortgage repayments has been requested mostly by young people, aged 25-34 (65.9 percent of all eligible persons of that age), most often from the Mazowieckie Province (57.5 percent of eligible persons in that region) and the Dolnośląskie Province (55.2 percent), and from cities of over 500,000 inhabitants (62.4 percent).

Source: Rzeczpospolita

Banks losing their growth potential

Due to the slowing economy, rising interest rates and increasing loan repayment risk, Moody’s has downgraded the outlook for the Polish sector.

“We have changed our outlook for the Polish banking sector from stable to negative. Near-zero economic growth in 2023, a significant increase in borrowing costs and high inflation will limit Polish banks’ growth potential,” stated Moody’s Investors Service in the Wednesday release.

Source: Parkiet

Withdrawal of orders granting injunction or security against Getin Noble Bank

The decision of the Bank Guarantee Fund to initiate compulsory restructuring against Getin Noble Bank will result in the withdrawal of orders granting injunction or security consisting in the suspension of credit installment payments.

Source: Rzeczpospolita

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Banking sector legislative overview | Banking today and tomorrow | October 2022

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