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Polish Banking Regulations: A Comprehensive Guide to Compliance
In Poland, the concept of a “bank license” does not exist in the banking law. Instead, it is defined as the right to conduct banking activities in the Republic of Poland. According to Article 2 of the Banking Law, a bank is a legal entity established in accordance with statutory law, operating on the basis of authorizations to perform banking operations that expose any repayable funds to risk.
Authorization Requirements
The Polish Financial Supervision Authority (KNF) requires banks to obtain two separate authorizations before commencing activities: authorization to establish a bank and then authorization to undertake activity. This two-element license structure was adopted in the Banking Law, with the first element being the authorization to establish a bank and the second element being the authorization to commence activity.
European Law Requirements
The requirement for bank licensing stems directly from European law, specifically Article 8 of Directive No 2013/36/EU (CRD IV), which mandates that all Member States require credit institutions to obtain authorization before commencing activities. In Poland, this is achieved through the Banking Law and its implementing regulations.
Application Process
To establish a bank in Poland, a founder must submit an application to the KNF, along with various documents and information. The KNF reviews these materials to ensure compliance with the requirements for establishing a bank, including:
- Review of business plans
- Financial statements
- Repute and professionalism of key personnel
Authorization Decision
The decision on granting authorization to establish a bank is based on a thorough inspection of all relevant factors, including:
- Assessment of the reliability and reality of the business plan
- Regularity and compliance with applicable laws
- Repute and economic situation of the founders
- Whether the proposed activities would violate any provisions of law or client interests
If granted, the authorization to establish a bank is issued in the form of a document that defines:
- Bank’s business name
- Registered office
- Founder(s)
- Initial capital
- Authorized activities
- Conditions for commencing operations
- Draft articles of association
- Composition of its first management board
Authorization to Commence Activity
The second element of a bank license is authorization to commence activity, which is granted by the KNF after verifying that the bank has:
- Proper organizational structure
- Collected full initial capital
- Appropriate facilities for safekeeping funds and valuables
- Complied with other requirements outlined in the decision on granting authorization to establish a bank
Non-Authorized Banks
In Poland, there are several banks operating without authorization from the KNF, primarily cooperative banks established before 1989 or those that were granted special exemptions under Article 178(1) of the Banking Law.
Publicly Available List
The list of authorized banks is publicly available on the KNF’s website.
Compliance with Polish Banking Regulations
Compliance with Polish banking regulations is essential for all financial institutions operating in the country, and understanding the requirements and procedures outlined above is crucial for ensuring a successful and compliant banking operation.