Banks criticized by Inspectorate

The General Banking Supervision Inspectorate has reprimanded banks for failing to cope with the difficult market situation. Bank representatives believe that the source of all their sorrows is the National Bank of Poland (NBP) as banks have to allocate obligatory reserves there. Bankers wish to have the possibility of classifying part of their bad debts under the costs of producing profits, which in turn would lower their tax burden. This proposal is supported by the NBP and the Polish Banks Association (ZBP). However this happens to be one of the few points on which the NBP and ZBP saw eye to eye at yesterday's Banking Forum, held in Warsaw. Prior to EU accession, banks are introducing standards that are, or will be, binding in the Union. According to the Inspectorate, this year banks should concentrate on increasing competitiveness. They should also prepare strategies that would increase profits in the face of falling profit margins. ZBP responded that the blame for falling margins and the imposition of financial burdens on clients can be attributed to the NBP. (Puls Biznesu, p. 6) A.C.