Thursday, February 5, 2015

Ministry of Finance and the OCCP bring continuous monitoring of banks in terms of service … – Banker

Ministry of Finance and the OCCP bring continuous monitoring of banks in terms of service … – Banker

Ministry of Finance and the OCCP bring continuous monitoring of banks in terms of how to implement the recommendations of the Committee of Financial Stability. One of the results of monitoring will be a list of good practices of foreign currency loans.

 
 

“We have decided to enter the OCCP with constant monitoring of the banks to see how they fulfill their commitments and declarations and how they implement the recommendations of the Committee of Financial Stability,” – said at the conference, Finance Minister Mateusz Szczurek.


 

He added that one of the results of monitoring will be created a list of good practices of lending rates.
 

President of the OCCP Adam Jasser stated that, in the context of the monitoring authority will analyze, among others, that banks have negative LIBOR and whether banks unilaterally change contracts with customers having foreign currency loans. “I’m going, where appropriate, take action under the mandate of the President of the OCCP” – Jasser said.


 

The creation of a ranking of banks

 

“We would like to present a ranking of banks, as well as a list of the best solutions, best practices in the market for foreign currency loans,” – he said at a press conference Szczurek.


 

He explained that this ranking will include information that is good spreads offered by banks and banks that use negative or negative interest rate of LIBOR gross. “So that was known to the client can see what the bank offers the competition” – he said.


 

He added that this also banks will be able to find out what’s available on the market and what should aspire. “These best practices, today you can see that a factor that changes the situation of borrowers and makes the load installments in some cases slightly higher or no higher than it was before the abrupt change of course (the Swiss franc – PAP)” – pointed out the head of the Ministry of Finance .

 

The ranking is to be built on the basis of statements generated by the information that banks will have to provide the Office of Competition and Consumer Protection. “We will ask the banks every week that we reported on in a formalized manner, the information on credit agreements denominated in Swiss francs. This includes all 27 banks,” – said the President of the OCCP Adam Jasser.


 

He explained that the banks will provide information on the amount of currency purchase and sale; whether negative include LIBOR base rate; or take into account the negative rate of the total cost of credit; whether borrowers have a suspension of repayment of loans; or allow customers to extension of credit, or banks allow translate the loan at a rate lower than that indicated in the table of the bank exchange rate. These statements are to be published on the website of the OCCP-in and the Ministry of Finance.


 

Jasser said that his office directed inquiries initiated against all the banks that grant loans denominated in foreign currencies. “As part of these proceedings, called on banks to provide information about whether negative Libor is included in the rate, or in relation to these loan agreements were made unilateral changes to the standard contract, with the current rules on early repayment of loans; on the rules relating to conversion” – said the president of the antitrust authority.

 

The head of the antitrust authority said that the regulator also asks banks for possible plans for additional security and the principles on which offered to restructure loans. “The answers should get to the end of the week and this information we will be analyzed in detail. In the event of irregularities to be taken appropriate action in the exercise of statutory powers of the President of the OCCP” – Jasser said.
 

He said that will also be running a special on consumer line frank.uokik.gov.pl through which signals will be collected from the customers of banks with which they offer to their banks occurred after January 15, which is on a rapid increase in the value of franc.

 

They want to strengthen the OCCP

 

The finance minister also said that the ministry headed by him and the OCCP came together to the conclusion that it would be advisable legislative changes that increase resource legal tools at the disposal of the office, will strengthen the powers of the President of the OCCP. “In the near future we will propose (…) a whole range of solutions that will enhance the protection of consumers,” – he said. Jasser clarified that it is among for changes that would allow the office to evaluate financial products at the moment they appear on the market, assess how their distribution and possibly suspend their distribution or modification of their order.

 

Another proposal would apply to extend to three years – one year – the period of limitation breach of the collective interests of consumers. In addition, the office would like to have the opportunity to present to the court in civil matters between clients and financial institutions so. significant judgment on. A similar opportunity now is the Insurance Ombudsman. “Today, often at the President of the OCCP-u are formulated such expectations from citizens that spoke in these processes, but unfortunately this is not legally possible” – Jasser said.


 

He stressed that the need for greater consumer protection in the financial market is the thing that did not show up yesterday, and the Ministry of Finance and the OCCP has repeatedly indicated that customers in the financial market are not sufficiently protected. “The example of other developed countries should strengthen the protection” – he added.


 

Szczurek said, moreover, that in a month should be ready to draft regulations that will allow exemption from income tax of the taxpayer, which could arise as a result of the redemption by the bank part of the loan.


 

In mid-January, the Swiss National Bank (SNB), unexpectedly announcing that it releases the rate of its currency, caused panic in the market. Previously, the SNB maintained pegged, which meant that the euro could cost less than 1.20 franc. The SNB’s decision meant that the franc appreciated strongly, including against the zloty. As a result, on January 15 for the franc had to pay up to 5.19 zł, but the day before he paid for 3.57 zł. Then franc fell, however, and so it costs a lot more than before the SNB decision, and it’s a problem for approx. 550 thousand. Polish indebted borrowers in that currency.


 

The proposal requires consideration KNF

 

The finance minister also said that the proposed conversion of loans in CHF by the President of the Polish Financial Supervision Authority requires further consideration and clarify any doubts. “At the last KSF did not discuss the proposal the President Jakubiak. I hope that this discussion will be held at the next, Tuesday’s meeting of the KSF,” – he said.


 

“In the case of far-reaching proposals we need to consider what they would have implications for interest rates and exchange rate appreciation, but also of what will be the consequences for borrowers, depositors and taxpayers deposits” – he added.


 

Andrzej Jakubiak, chairman of the Financial Supervision Authority, presented Tuesday in parliament proposals for the conversion of mortgage loans in CHF PLN. He estimated that the potential loss of the sector could reach 25 billion zł, which would be shared 20-25 years, and the annual cost for t he banks would be 1-1.2 billion zł, ie approx. 7 percent. annual profit banks. According to the concept of KNF conversion costs for both parties should not have a single negative effect, the sum should be spread over time.


 

According to the KNF existing loan proposal would be divided into two loans: secured by mortgage loan in PLN and unsecured mortgage-which reflect the weakening of the zloty has consequences. State debt under a mortgage loan is the answer that would have granted a loan of gold at the same time as the franc. The value of mortgage unsecured loan equivalent to the difference between the total debt stock on the date of conversion and the state debt under a mortgage loan. Unsecured mortgage-half would be paid by the borrower, and half canceled. (PAP)

 

kam / ana /

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