During his speech the head of the National Bank of Poland responded to the crisis that began back in 2007. As he spoke, presenting a report on the activities of the bank in 2014. In order to deal with it major central banks have taken unprecedented actions to which they are now they criticized. Because they relied on the printing of money.
He added that there was then a “natural tendency” to invest this money somewhere that they bring profits. “There was a danger of violent flows, which ebb and flow of capital to countries not affected directly by the great financial crisis. We can therefore say that the so-called risk charged to the economy. Emerging countries,” – he said, adding that such countries is classified among Poland.
“We could be dealing with a fundamental, important appreciation of the zloty, with all the negative consequences for the economy, then weakness could happen again. This excess liquidity of banks, financial institutions also resulted in increased volatility in commodity prices, both food and energy “- pointed.
The MPC has created a very difficult, non-standard monetary policy conditions – he stressed.
A very successful – such was the opinion of the NBP President Marek Belka conducted in recent years by the MPC’s interest rate policy. He admitted that the MPC was concerned that if too much cut rates, then people will start to withdraw deposits from banks, eg. To investment funds.
Beam recalled that Poland was one of the few highly developed countries in the world and the only member of the European Union, which in times of global crisis to avoid recession. “The famous green island. I know I + green island + is a concept with which to ridicule. I do not ridicule. It is a great success”, – noted the head of the National Bank of Poland, and the hall of the Sejm responded to him applause.
“It is, that Poland did not fall into recession has allowed the National Bank of Poland avoid a departure from conventional politics, that the policy pursued by interest rates “- rated Beam.
President of the NBP pointed out that too high a level of interest rates could threaten the huge influx the amount of capital and excessive appreciation of the zloty. In contrast, reduction of interest – as in some European countries – to zero, it could cause all sorts of unforeseen social behavior. The more that – as noted – the people in Poland still remember the high inflation.
“We were afraid that if we cut interest rates too far, then people may begin to withdraw deposits from banks. Where? For example, to investment funds. And these know once profitable and loss of time. And all the risk – for the participants, ie those of our depositors. (…) We could then count on the fact that people will start to look for some strange, ultraryzykownych ways to invest . The infamous Amber Gold is such an example, “- said the head of the NBP.
” We had those feet so calibrated so set that they were not too high so as not threatened to excessive zloty appreciation, but also not too low that deposits are not floated to the banks do not have to be either dependent on external financing (…), or restrict the lending business. And that, and that’s bad, “- he added.
” It seems to me that interest rate policy has been very successful. Very successful, “- he concluded.
Sale of investment policies by banks was sometimes deceptive – says the president of the NBP.
” The banks are obviously grievances and is sometimes justified. (…) Polisolokaty. Not so much the very concept of investment policies, but the way they sell was sometimes deceptive, “- he said.
The so-called.” Polisolokaty “is a life insurance and endowment insurance with insurance capital funds. They are designed in such a way that a small proportion insurance premiums goes on, and in most clients’ money goes to investments in mutual funds. The agreements are concluded usually for many years. These products have proven to be disadvantageous for many customers. In October last year, the Office of Competition and Consumer Protection imposed on offer such products from Aegon TUnŻ, Idea Bank, Open Finance and Raiffeisen Bank Poland penalties for a total value of 50.4 million zł for unreliable information on the product and the rights and obligations of the parties.
Beam stresses that it is an advocate of “domesticated” system bank. “Domestication” is not the same as “polonization.” In the case of “domestication”, he said, it does not count who owns the bank, but where it is headquartered.
He cited the example of Alior Bank. He stressed he did not know whether it is a Polish bank, but based in Poland and “from the point of view of behavior,” replied criterion Polish bank.
He pointed also out that banks with purely domestic property were, in some countries , eg. in Hungary or Latvia, crisis centers. In the case of purely national banks recapitalize their possible it may have only come from national measures. Meanwhile, even foreign banks based in Poland, he added, after the outbreak of the crisis have increased lending.
Belka said it best, when the banking system is “diverse” when domestic and foreign capital in them, eg. In relation 50 to 50 or 60 to 40.
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