Polish Banking Sector: A Review of Depositor Protection, Bank Secrecy, and Prudential Regime
By Dr Marcin Olechowski, Dr Wojciech Iwański, and Tytus Brzezicki, Sołtysiński Kawecki & Szlęzak
Depositor Protection
In Poland, the Bank Guarantee Fund (BGF) is responsible for administering the mandatory depositor protection scheme. All banks with their corporate seat in Poland are required to participate in the fund by contributing to it based on several factors, including:
- Management profile
- Capital
- Liquidity
- Quality of assets
The BGF covers various funds, including:
- Funds accumulated in bank accounts
- Other receivables arising from banking activities
- Funeral costs of deceased account holders
- Selected receivables from bank securities
However, the guarantee does not extend to:
- Funds that were not subject to turnover within two years prior to the date of fulfillment of the guarantee condition
- Funds less than the PLN equivalent of EUR2.5
Entities entitled to the guarantee include:
- Natural persons
- Legal persons
- Organizational units with legal capacity
- School savings funds
- Savings and loan associations
- Parent councils
On the other hand, entities not entitled to the guarantee include:
- The State Treasury
- National Bank of Poland
- Banks
- Credit institutions
- Financial institutions belonging to the same financial holding company
Bank Secrecy
In Poland, banks are required to maintain bank secrecy regarding banking activities, including:
- Negotiations
- Conclusion
- Execution of contracts
The obligation to maintain bank secrecy does not extend to cases where disclosure is necessary for:
- Proper performance of anti-money laundering and counter-terrorism financing obligations
- Disclosure to entities with a legitimate interest
Banks may disclose information subject to bank secrecy exclusively to:
- Other banks
- Credit institutions
- Financial institutions
- Providers of PSD2 open-banking services
- The PFSA (Polish Financial Supervision Authority)
- Courts
- Prosecutors
- The Financial Ombudsman
Breaching bank secrecy is subject to both civil liability (damages) and criminal liability (fine up to PLN1 million and imprisonment up to three years).
Prudential Regime
The Banking Law prescribes the minimum initial capital of a bank as the PLN equivalent of EUR5 million, which may be adjusted based on:
- The intended scale and scope of bank activities
- EU regulations
The PFSA requires banks to maintain adequate capital and liquidity levels to ensure their stability and ability to withstand potential losses. Banks must also:
- Establish a risk management system
- Conduct regular stress tests
- Maintain a comprehensive risk profile
Conclusion
Poland’s banking sector is subject to various regulations and requirements aimed at ensuring depositor protection, maintaining bank secrecy, and promoting prudential behavior among banks. Understanding these regulations is crucial for financial institutions operating in the Polish market.
About the Authors
Dr Marcin Olechowski is a partner at Sołtysiński Kawecki & Szlęzak, specializing in banking and finance law with a focus on regulatory issues.
Dr Wojciech Iwański is a counsel at Sołtysiński Kawecki & Szlęzak, with extensive experience in advising financial institutions on compliance with Polish and EU regulations.
Tytus Brzezicki is an associate at Sołtysiński Kawecki & Szlęzak, assisting clients on matters related to banking and finance law, including regulatory issues.
Sołtysiński Kawecki & Szlęzak is a leading Polish law firm with expertise in banking and finance law. The firm advises financial institutions on various legal matters, including regulatory compliance, litigation, and transactional work.