NBP carefully banking union – Republic

NBP carefully banking union – Republic

Source: Bloomberg

Poland is in no hurry to banking union – declared the NBP President Marek Belka. First, he wants to see how the supervision of Frankfurt.

– Polish banks, of course, would like a European banking union because they feel that the supervision of Frankfurt will be weaker than in Warsaw. Precisely for this reason we do not want to do it – said NBP president at a meeting held on Wednesday in Brussels by the think tank Bruegel. Marek Belka argued that the Polish banking sector is in very good condition also because the supervisor never agreed to open branches of foreign banks, and insisted on the creation of separate companies under Polish law. Thanks to have complete control over their activities in Poland. – During the crisis, it turned out that the Polish subsidiary are in better shape than their foreign mothers – Beam said.

The approach of the President of the NBP to the new surveillance is cautious. According to him, you have to wait and see how the new institution, located at the ECB, will deal with the supervision of banks in the euro area, and then decide whether to join. Similar is the Polish attitude to the euro zone. – First, we need to see how the eurozone can cope with their problems – said Beam. According to him, the common currency requires a state or parastatal institutions and the euro area is only when they are created. The failure of the project is possible, therefore, better to wait. central bank chief admitted that staying out of the single currency also carries a cost, or lost profits, which are often underestimated. But in the end, as he argued, it is not economic calculation, but political calculations decide to enter the euro zone. A role can also play a crisis in Ukraine. – From their discussions with representatives of the Baltic states know that the Russian factor played an important role when it existed at the entrance of the eurozone – admitted Sylvie Goulard, a French MEP from the Liberal Party.

According to the Polish economy beams would cope in the zone euro, both in terms of fiscal and in terms of progress with structural reforms. In contrast, for a completely anachronistic exchange rate criterion, it is considered the single currency, namely the need to maintain the zloty at least two years in ERM2, where its exchange rate against the euro could fluctuate within +/- 15 percent. around a predetermined parity. – That would be an invitation to all the world speculators to attack the gold – rated NBP president.