Regulatory Framework for Banks in Poland

Introduction

The banking sector in Poland operates within a well-defined regulatory framework designed to ensure stability, security, and efficiency. This framework is managed by various institutions responsible for supervising and regulating the sector.

Primary Authority: Polish Financial Supervision Authority (PFSA)

• The Polish Financial Supervision Authority (PFSA) serves as the primary authority responsible for:
  • Supervising banks
  • Branches of foreign banks
  • Representative offices of foreign credit institutions

Annual Supervisory Reviews and Evaluations

The PFSA conducts annual supervisory reviews and evaluations to:

• Assess bank performance
• Identify areas requiring improvement

In cases where irregularities are identified, the PFSA may:

• Issue recommendations for improvement
• Impose administrative penalties on non-compliant entities

Soft Law Recommendations by the PFSA

The PFSA has issued soft law recommendations in the form of guidelines to provide best practices for prudent and stable bank management.

Macroprudential Supervision

The Financial Stability Committee is responsible for carrying out macroprudential supervision, focusing on systemic risks that may affect the financial stability of the country. The central bank (NBP) supervises the payment system to ensure its smooth operation and security.

Consolidated Supervision by the PFSA

The PFSA conducts consolidated supervision of domestic banks operating in holding companies, requiring them to:

• Provide consolidated financial statements
• Submit financial reports on subsidiaries or entities closely linked to them

This comprehensive regulatory framework helps maintain a stable banking sector in Poland.