BZ WBK to set up mortgage bank

The management board of WSE-listed lender BZ WBK adopted a resolution on the intention to set up a mortgage bank in the group's structure under the name BZ WBK Bank Hipoteczny, the company said in a market filing. “In connection with the creation of Bank Hipoteczny, the Bank will obtain a stable, long-term source of financing for mortgage loans in the form of mortgage covered bonds. The establishment of such bank will contribute to increasing the stability and security of the group, and indirectly may contribute to increasing the stability and security of the whole banking sector,” BZ WBK explained. The bank said that the creation of a mortgage bank requires obtaining the consent of the bank's supervisory board and obtaining regulatory approvals from the Financial Supervision Authority KNF.