Financial Crime World

Poland Tackles Banking Regulations Compliance

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Poland’s banking sector is governed by a comprehensive legal framework that sets out the principles for carrying out banking activities, establishing banks, and exercising supervision. In this article, we will delve into the key laws and regulations that govern the Polish banking industry.

The Banking Act of 1997

The Banking Act of 29 August 1997 is the primary legislation governing the Polish banking sector. The Act defines a bank as a legal person established in accordance with the provisions of statute, operating on the basis of authorizations to perform banking operations that expose funds entrusted to the bank to risk.

  • A bank is authorized to conduct certain activities, including:
    • Accepting deposits payable on demand or at a specified maturity
    • Operating deposit accounts
    • Extending loans
    • Issuing and confirming bank guarantees
    • Issuing and confirming letters of credit
    • Issuing securities
    • Performing monetary settlements
    • Conducting other operations reserved solely for banks under separate legislation

Additional Laws and Regulations

In addition to the Banking Act, Poland’s banking sector is also regulated by several other laws and regulations, including:

  • The Act on Narodowy Bank Polski (Polish Central Bank)
  • The Act on Covered Bonds and Mortgage Banks
  • The Act on the Bank Guarantee Fund, Deposit Guarantee Scheme, and Resolution
  • The Act on Bank Gospodarstwa Krajowego (State-Owned Bank)

Types of Polish Banks

Polish banks operate as:

  • Commercial banks
  • State banks
  • Cooperative banks

The rules governing the organization, operation, and affiliation of cooperative banks are set out in the Act on the Operation of Cooperative Banks, Their Affiliation, and Affiliating Banks.

Financial Supervision Authority

The Polish Financial Supervision Authority (PFSA), Narodowy Bank Polski (NBP), and Bank Guarantee Fund (BGF) provide information on the financial situation of banks in Poland. The PFSA website also lists entities that have not obtained a banking license, meaning deposits maintained in these entities are not covered by national guarantees.

Compliance with Banking Regulations

With compliance with banking regulations being crucial for the stability of the financial sector, it is essential for Polish banks to adhere to the guidelines set out in these laws and regulations. By doing so, they can ensure the safety and soundness of their operations and maintain public trust.

By understanding the legal framework governing the Polish banking sector, you can gain a better appreciation for the importance of compliance with banking regulations in Poland.