Thursday , September 16 2021

The KNF relationship breaks the shadow of the law on financial supervision. Nevertheless, she dealt with Parliament with her



The Ministry of Finance, as well as the politicians of the awarding camp, argues that the amendment does not only refer to European Commission provisions and consequences of regulations EU, and similar solutions operate in other Community countries.

On the other hand, the critics of the amendment indicate that the adjustment of Poland's law to EU standards has already been introduced in 2016, and the reforms imposed by the government expand powers Polish Financial Supervisory Authority, especially in the context of what is known as KNF Scandals, more about what you can read in money.pl.

– The answer, presented in the Sejm and now being treated in Parliament, is a well-known and appropriate solution for many years in Poland before adopting the Decision Act – explains Krzysztof Pietraszkiewicz, president of the Polish Bank Association in an interview with money.pl. – If we talk about the mergers and restructuring of banks in the past 26 years, it is worth remembering that a significant part of the 1,250 banks that ended their activities in their original form to some extent are covered by such legal answers.

In fact, from 1997 to 2016, regulations on banks over were operating in the Polish act. However, the need to introduce the EU directive on the BRRD (Bank Recovery and Resolution Directive) secretly to the law of Poland meant that these provisions were canceled and partially transferred to other organizations.

EU solutions were responding to the 2008 financial crisis. The regulations issued by the European Commission on the rescue, repair and liquidation of banks intended to provide quick feedback to supervisory authorities on local financial markets – including and enabling banks to take over financial difficulties in banks others.

Poland has adapted to this guidance two years ago, and the previous competencies of the KNF in this matter were applied by the Bank Guarantee Fund. Only the decision on the enforcement restructuring process (the only Solution Fund) can only be published under certain conditions.

When can the bank be taken over

The Act on the Bank Guarantee Fund assumes that an enforcement restructuring can be started, which can lead to a bank transfer, when there are three conditions at the same time.

Firstly, the bank must be at risk of bankruptcy, secondly there is no possibility of correcting and finally – when necessary in the public interest.

Also watch: President Duda on the KNF scandal:

– In the banking law, at present the responsibility of the Bank Guarantee Fund is a mandatory connection mechanism. There is a hard procedure to do, which is why it could be safe for banks, for example. However, it can be too "heavy" to secure the financial system if there was an emergency. Therefore, the idea of ​​transferring these competencies to the Polish Financial Supervisory Authority. In terms of the principle itself, it could be a favorable answer. The problem is the context of increasing the competencies of the institution, which the trust has damaged – says Marcin Skoczylas, a legal attorney, president of the Institute of Economic Law.

Too large competence

The law that parliamentarians currently work gives more possibilities to the KNF. The controversial article states that that decision could be taken on taking advantage of a bank by another bank from the Commission in the case of a reduction in the bank's own bank below the statutory level or even the appearance of a danger.

Solicitors and experts emphasize that this can give great KNF power.

– In these regulations, a market selective criterion has been added, which has not yet been used in the Polish act. All you need to do is the suspect or danger of reducing the bank's own bank so that the supervisor can start a process that allows the bank to take over the bank – says president of the Law Institute Economic.

According to the president of the Association of Polish Banks, Krzysztof Pietraszkiewicz, as such a work pathway has given to the deed, legal legal acts and formulas should be published precisely to define the conditions they must be met so that they can use such a solution.

What? – Simply what it must happen in the bank, so that the invigilator (KNF) can make a decision that starts the process of taking over one bank by another. In addition clear instructions should be given on how to record such issues.

As he emphasized, such rules or conditions that the supervisor could start the process of taking over the bank by another, could be drawn up over a number of years. I'll be scourged in various national and international documents. – However, there were other circumstances, including an incident related to the PFSA, which raised concerns. In order to rebuild trust, it is necessary to create transparent regulations, as well as a responsible and open conversation of many people, including regulators, supervisors and politicians – emphasizes the President of the Polish Bank Association.

Inaccurate procedures can lead to abuse and it is not surprising that they are opposing the private sector. – All such provision that presents an element of discretion arises the fears of entrepreneurs and citizens. They disrupt the proportions between the citizen and the state. All incorrect provisions raise the risk of specific abuse – the comments of legal adviser Dr Remigiusz Stanek, expert BCC, Partner at the Legal STANEK. – Unfortunately, the administrative law of Poland, but also the tax law, is full of formulations, which in an optional manner bring the illegal cases to the authorities of the state. It is derived from a specific legislative philosophy that a Polish legislator has been using for a long time.

Answer Have I Tested?

However, the Ministry of Finance claims that there is no discretion whatsoever, which proves that the mechanism is effective until 2016. – The amendment really recovers the 2016 legal status – emphasized the Deputy Minister Piotr Nowak during the Finance Committee's work.

– This new answer is very old and has been proven. The newly recommended World Bank situation is also important – said Zdzisław Sokal, the President of the BFG represents the president of the KNF.

The same thing, which was on the Czarnecki taps (those who revealed the KNF scandal), was the author of the so-called plan of Zdzisław. The plan, which, in the words of the head of the KNF, Marek Chrzanowski, was leading to taking banks belonging to Leszek Czarnecki.

– The way of introducing the correction and context of the situation in which the changes are introduced, stimulate many emotions. There is not enough time to discuss the proposed change among market participants, politicians and experts to be reliable and honest – the President of the Polish Bank Association, Krzysztof Pietraszkiewicz, admits. – It is a shame that there was not enough time to extend the process of proceeding with the provisions of the final law that would allow to explain the various public and political opinion issues.

| SYLW FOR MONEY.PL: Krzysztof Pietraszkiewicz, president of the Association of Polish Bank
| — |
| As part of building trust in the market, in the near future, one should look at organization and supervision and regulation, it would be good, for example, that representatives of trade chambers could take part in regulatory issues with an advisory voice at the meetings of the supervisory commission Also in the BFG Council, it should take part in the representation of banks in the form of people with whom the environment trusts, giving assurances that the rules created there, whether the decisions made take into account the interests of customers and the sector whole equally. Communication between market supervisors and marketers and regulators should be improved. The degree of tension on the political scene is so great that it has a negative impact on the quality of the law. Despite the efforts of different people, the procedure is underway in an atmosphere that can lead to more deception. In terms of investors and entrepreneurs, disputes for the judiciary also have a negative impact. It's a common interest to calm the atmosphere
organizations of public trust and ensuring that they can operate according to the highest level standards. |

Tags: dog scandal, scandal, KNF Chrzanów czarnecki, surveillance, banks. NBP Senedd news. economy. Polish economy

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