Moody's: BFG contribution may slash bank profits by 42%

Supplementary contributions to the Bank Guarantee Fund (BFG) of PLN 2 billion in total made by Polish banks in relation to the bankruptcy of SK Bank may wipe out 42% of Q4 sector gross profit, Moody's rating agency said in a report. The full-year gross profit may decline by some 11 percent,  Moody's expects. Although most of the banks will make profit, three of them: BGZ BNP Paribas, BOH and Getin Noble Bank, may turn in a net loss in Q4 2015, the report reads. On November 21, the financial watchdog, KNF, suspended the operations of SK Wołomin due to its insolvency. The Bank Guarantee Fund is an institution which operates the deposit guarantee scheme in Poland. It reimburses deposits of up to €100,000 in the event of a bank's bankruptcy.