Bankers fear PKO BP/BGK mortgage bank will have an unfair advantage

It is still uncertain when a joint mortgage bank of the two state-owned banks PKO BP and Bank Gospodarstwa Krajowego (BGK) will be launched, but competing banks already fear it could constitute unfair competition. The mortgage bank is set to have a share capital of zl.60 million, with PKO BP holding a 75% stake and BGK the remainder. BGK is not a regular commercial bank, but is a state bank by definition, with a mission of supporting social programs, in particular residential housing. Other bankers say the joint venture would have access to financial aid from the Treasury and this, they say, constitutes the biggest misgiving as to whether it would compete with other mortgage banks on equal terms. (Puls Biznesu, p.6) T.J.