NBP should take over financial sector supervision – KNF head

New KNF chairman Marek Chrzanowski believes that the best solution regarding supervision of the financial sector is to transfer this function to the central bank (NBP). In his opinion, the integration of the two institutions will require at least one or two years, so that appropriate regulations can be developed.

“Regarding the transfer of financial market oversight to the NBP, as proposed by the NBP governor, the decision will be made by legislators. The current model functioning in Poland is one from which we want to slowly withdraw,” Chrzanowski said in an interview. He noted that the European Central Bank (ECB) has a positive attitude to such a solution, which is already a reality in many EU states.

Chrzanowski indicated that supervision of banks alone is an alternative solution, but given the complexity and the level of integration of the Polish financial market, he believes it would be difficult to implement. “It is favorable for financial system stability and development to move to central bank supervision of the banking sector and, due to its integration with the capital and insurance sectors, also the supervision of these sectors,” he explained.