KNF: banks with foreign currency loans threatened ex-dividend and … – Polish Radio

  Financial Supervision Commission introduces tools to ensure greater security of vulnerable banks foreign currency loans , photo: Pixabay
 

James due to the statement after Tuesday’s meeting of the Financial Supervision Commission “took note of the proposal to the Office of Financial Supervision Commission for additional capital requirements for banks significantly involved in foreign currency loans. “

Recommendations KNF concern banks with foreign currency loans at risk
KNF stresses that these proposals are associated with a high proportion of loans with LTV ratio above 100 percent. (With a low probability of repaying) in some banks, providing foreign currency loans.

KNF wants to increase the capital of troubled banks

Thus, “FSA intends to take action aimed at the individual impact on the own funds of banks, on the basis of Art. 138, paragraph. 1, item 2 and Art. 138a of the Banking Act. “

will
capital offsets Offset capital to be imposed on banks in accordance with the guidelines of the European Banking Authority, on “Measures to ensure an adequate level of capital to cover the risks associated with foreign currency loans, the borrowers having unprotected by issued currency position.”
“Until the end of the procedure relating to the imposition of banks significantly involved in the foreign currency loans individual spacings capital, which by the end of 2015. These banks will receive in April 2015. Individual supervisory recommendations on non-payment of dividend for 2014. ” – Inform the KNF.
In February PAP Polish lucky FSC Chairman announced that if the banks do not accept his proposal for the conversion of loans frankowych PFSA will have to use the “regulatory instruments”. March 11. the banking sector presented his proposal to solve the problem loans frankowych, different from the proposals the President of the KNF.
“We are a supervisor, we take care of the security of the system and the security deposit. If you have a catalog of instruments, all of which will use” – said in February PAP Jakubiak.

He added that the supervisory instruments, which if anything can be used, as an example. ‘additional capital charges “and” higher risk weights for mortgages. ” “Also, if you would be up to the judicial decisions concerning the validity of credit commitments and they were taken to the disadvantage of the banks, we will be demanded from banks adequately cover the risk of capital” – said the head of the Polish Financial Supervision Authority then.
Tuesday FSC Chairman PAP said, however, that the decision about domiarach is not related to the concept of conversion frankowych loans. The Commission, as pointed out, she had to “respond to the risks associated with high LTV loans.”

PAP, jk