KNF: FX loans conversion could cost banks PLN 22 bln

Financial watchdog KNF said that if Poland implements the bill on foreign currency conversion in the form it was voted in the parliament last week, it will cost banks about PLN 22 billion. KNF prepared a document for senators, in which the institution pointed out that around 33 percent of all mortgages denominated in foreign currencies are eligible for conversion into złoty under the bill. The watchdog also said that in the case of ten banks, the cost of conversion would exceed their 2014 net profits, while for six it would exceed three times their last year's profits. Last week, the parliament approved the bill that put the burden of FX loan conversion mostly on banks. The law needs to be approved by the senate and signed by the president. The banking sector posted a net profits of PLN 16 billion last year.