NBP considers reduction of reserve rate, promising some relief for banks

The National Bank of Poland (NBP) is considering reducing the commercial banks' minimum reserve rate as soon as 2002, Puls Biznesu has learned. The rate, which is now at 5%, would be gradually lowered in 1% increments every six months, until it reaches 2%, the common rate in European Union (EU) countries. The reduction would bring some relief to the country's commercial banks, which will be heavily burdened by the proposed taxation on income from deposits. (Puls Biznesu, p. 8) M.K.