NBP: FX loans are the main source of risk for financial system stability

Poland's Central Bank (NBP) macro prudential oversight body KSF still sees FX loans as the main risk for the financial system stability, although not a source of systemic threat, it “remains a source of risk in the context of the yet undetermined draft regulations,” the committee explained. The remaining main sources of systemic risk include: the declining resilience of banks to falling profitability, the portfolio of floating-rate PLN mortgages and the difficult situation of the savings and loan institutions and some co-op banks. The committee decided to maintain the recommended level of anti-cyclical buffer at zero, the statement also showed.