Tag: european banking system
The European Systemic Risk Board published a report on solving the problem of non-performing loans in the European Union. ESRB stressed that the condition of those loans can threaten stability of the financial system.
The Banking Union can be effective and give the potential to break the vicious cycle of fiscal and financial instability only if at the same time all necessary components are in place – a Single Rule Book, a Single Supervisory Mechanism, a Single Resolution Mechanism and financing arrangements. Quick entry to the Union would be beneficial for Poland – told Bernhard Speyer, former Managing Director at Deutsche Bank Research.
The net profit of banks after nine months of the year exceeded PLN 11 billion, according to the Polish Financial Supervision Authority (KNF). It is PLN 100 million less than the result after three quarters of the record year 2011. However, this year’s result was generated in different macroeconomic conditions.
“Large banks dictate to their governments what to do, and banks in turn are too strictly steered by regulators, who want to influence banking products, but are not interested in the systemic risk generated by these banks. Functions are confused,” says Józef Wancer, a banker with many years’ experience, currently an advisor to the Board of an advisory company Deloitte. “Europe should follow the US example more closely.”, he adds.
Several days ago, Credit Unions (Polish: SKOK) have been covered by supervision of the Polish Financial Supervision Authority (PFSA). Within the next three months, Unions’ financial statements will be examined by statutory auditors. Only when the audits are completed, it will be possible to state if the Unions’ assets, or the scale of loans they have granted, are covered by the funds they accumulated to a sufficient extent.
For most banks loans from parent banks are the cheapest form of loan funding. The crisis has dried out that source, however, so banks have to devise new methods to raise the necessary capital – claims Andrzej Topiński, Chief Economist of the Credit Information Bureau.