4.6. Changes in recommendations of the Polish Financial Supervision Authority (KNF) and legal acts concerning banks

 

 
A legal act / Recommendation

Date of entry into force
and a summary of new challenges 

Influence on the main areas of the Bank

YES –  the regulation has an impact on a given area

NO – the regulation has no impact on a given area, or has a limited impact on a given area

Basel III (the Regulatory package CRD IV/CRR)

2014

January 1, 2014

Introduces new requirements in the scope of capital, liquidity, corporate governance and remuneration policy. The process of adjusting domestic regulations to CRD IV/CRR package is underway.

 

Capital base

 

IT and HR Resources

 

Financial result
(excluding IT/HR costs)

 

Client and offer

red-triang  YES

red-triang  YES

red-triang  YES

green-triang  NO

Foreign Account Compliance Act (FATCA) & Competent Authority Agreement (CAA)

July 1, 2014

FATCA requires identification and monitoring of the status of banks’ clients and reporting on assets and investments of US tax residents.
Failure to comply with FATCA results in imposing a 30% withholding tax on all financial transfers made from the USA to non-US financial institutions.

Capital base

 

IT and HR Resources

 

Financial result 
(excluding IT/HR costs)

 

Client and offer

green-triang  NO

red-triang  YES

green-triang  NO

red-triang  YES

Recommendation D

December 31, 2014

The aim of the amended recommendation is to improve the quality of management in the areas of IT and ICT security at banks, in connection with improvement of the supervision in these areas.  

 

 

Capital base

 

IT and HR Resources

 

Financial result 
(excluding IT/HR costs)

 

Client and offer

green-triang  NO

red-triang  YES

green-triang  NO

green-triang  NO

European Market Infrastructure Regulation (EMIR)

2013-2015

It refers to operation of capital markets, introducing new requirements mitigating risk.  The regulation imposes an obligation of clearing transactions via central counterparties and reporting transactions to trade repositories, which results in an increase in costs of concluding transactions in financial and derivative instruments.

 

 

Capital base

 

IT and HR Resources

 

Financial result
(excluding IT/HR costs)

 

Client and offer

green-triang  NO

red-triang  YES

red-triang  YES

green-triang  NO

Recommendation S

July 1, 2014

Changes including limitations in granting loans in foreign currency and in the maximum lending period. Limitations also concern an annual reduction of limits on the debt to income ratio and a minimal own contribution.

 

 

Capital base

 

IT and HR Resources

 

Financial result
(excluding IT/HR costs)

 

Client and offer

green-triang  NO

green-triang  NO

red-triang  YES

red-triang  YES

Announcement of the Polish Financial Supervision Authority regarding Screen Scraping

July 14, 2014

The ban imposed by the PFSA (KNF) refers to the use of screen scraping, i.e. intra-bank transfer of clients’ data bases.  Information about finances of clients from other banks was used to customize the banking offer for clients’ needs and simplified the lending procedure; however, in the opinion of the PFSA, this solution increased a threat to the security of information in the Internet banking.

 

 

Capital base

 

IT and HR Resources

 

Financial result 
(excluding IT/HR costs)

 

Client and offer

green-triang  NO

green-triang  NO

green-triang  NO

red-triang  YES

Payment Services Act

July 1, 2014

January 1, 2015

The amendment to the Payment Services Act imposed a maximum interchange fee - reduction from 1.2-1.3% to 0.5% starting from July 1, 2014 and a further drop to 0.2% for debit cards and 0.3 for credit cards from February 1, 2015.

 

 

Capital base

 

IT and HR Resources

 

Financial result 
(excluding IT/HR costs)

 

Client and offer

green-triang  NO

red-triang  YES

red-triang  YES

red-triang  YES

BRRD (Bank Recovery and Resolution Directive)2015

January 1, 2015

The directive obliges banks to prepare remedy plans, and a resolution authority appointed for this purpose will draw up resolution plans. Furthermore, banks are obliged to maintain the right structure of obligations to guarantee proper level of instruments, which, in the case of a resolution, may be written down or converted into capital shares. BRRD implementation also entails creation of a resolution fund, which is to gather funds totalling 1% of deposits insured in BGF. 

Capital base

 

IT and HR Resources

 

Financial result 
(excluding IT/HR costs)

 

Client and offer

red-triang  YES

green-triang  NO

red-triang  YES

green-triang  NO

Recommendation U

March 31, 2015

Introduction of a reporting requirement whereby the bank clearly specifies its role in the offering of insurance services. In addition, under the recommendation, the selection of an insurer is at the client’s discretion. totalling 1% of deposits insured in BGF.

 

Capital base

 

IT and HR Resources

 

Financial result 
(excluding IT/HR costs)

 

Client and offer

green-triang  NO

green-triang  NO

red-triang  YES

red-triang  YES

Recommendation P

June 30, 2015

The amended Recommendation P aims at updating the standards of liquidity risk management after the financial crisis experiences. It provides for defining the acceptable liquidity risk, liquidity measurement and management. red in BGF.

Capital base

 

IT and HR Resources

 

Financial result 
(excluding IT/HR costs)

 

Client and offer

green-triang  NO

red-triang  YES

red-triang  YES

green-triang  NO

Act on Macro-prudential Supervision 

2015

The Act aims at strengthening the financial system stability and reducing the probability of financial crisis. For this purpose, it appoints a Systemic Risk Council with powers to issue warnings and recommendations to banks.  

Capital base

 

IT and HR Resources

 

Financial result 
(excluding IT/HR costs)

 

Client and offer

red-triang  YES

green-triang  NO

green-triang  NO

green-triang  NO

Act on the Bank Guarantee Fund

2015

The amended Act on the Bank Guarantee Fund introduces a prudential levy for stabilisation fund (maximum rate is 0.3% of the total risk-weighted exposure).  The prudential levy for 2014 totalled 0.037%, whereas for 2015 - 0.05% of the 12.5-fold of total capital requirements calculated for each of the banks.  

Capital base

 

IT and HR Resources

 

Financial result 
(excluding IT/HR costs)

 

Client and offer

green-triang  NO

green-triang  NO

red-triang  YES

green-triang  NO

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