Poland is preparing a set of “supervisory and regulatory mechanisms” to push banks into restructuring their forex loan portfolios, the National Bank of Poland (NBP) said on January 2.
A conversion plan has been on the cards since the Swiss franc leapt in value against the zloty in early 2015. Over 500,000 mortgage loans - mostly in the Swiss currency - were taken out by Poles ahead of the 2008 crisis. However, earlier suggestions of a forced conversion were shelved last year due to concerns over the stability of the banking sector.
So far, Poland has only worked on a bill to force banks to refund unfairly charged spreads on mortgage repayments in foreign currencies. The government said in August it would hold off for a year on a conversion scheme, asking banks to come up with their own voluntary plans.
However, Warsaw has also made it clear that if banks fail to self-regulate they will be pushed to carry it out by changes in the regulatory framework. That is what the NBP now says is in the works, PAP reports.
A working group has been set up to establish "supervisory and regulatory mechanisms that would stimulate the banks and their clients to make joint, voluntary decisions on restructuring FX housing loans," the NBP said.
"The guiding goal of the group is to find such solutions that would protect social interest without affecting negatively the stability of the financial system," the central bank stated. The group is expected to present the outcome of its work to the Financial Stability Committee at the end of March.
The National Bank of Ukraine (NBU) has forbidden local banks and the country's financial institutions to perform any cash transactions using the new banknotes and coins issued by the Russian central ... more
Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more
The Central Bank of Iran (CBI) and the Turkey-based ECO Trade and Development Bank (ETDB) have signed a memorandum on strengthening bilateral ties, the CBI said on October 10. ETDB is a Eurasian ... more