Changes to Bank Guarantee Fund to make dealing with troubled banks easier

Banks want to reform the Banking Guarantee Fund (BFG), so that in the event that a bank faces problems, they are not required to quickly come up with hundreds of millions of zloty to salvage it. Instead, the Polish Bank Association (ZBP) is proposing to successively collect small sums from banks, so as to create a cushion sufficient to cover potential payments to ailing banks when the need arises. ZBP is further demanding greater control over the BFG, which is 85% financed by commercial banks. They want the General Banking Supervision Inspectorate (GINB) to warn the BFG in advance of any potential problems, so as to allow for the possibility of salvaging an ailing bank with a loan, rather than waiting for it to lose solvency altogether. (Puls Biznesu, p. 6) T.J.