PKO BP has abandoned plans to establish its mortgage bank

According to unofficial sources cited in daily Gazeta Wyborcza, after two years of work, the largest domestic retail bank, PKO BP, has abandoned plans to establish its own mortgage bank, Polski Bank Hipoteczny. The decision was taken at yesterday's meeting of the bank's management. Rumors are circ ulating that two factors have determined the issue. The bank is preparing for privatization and is reluctant to engage in the implementation of a new structure that will naturally require quite a large capital injection. Furthermore, mortgage banks are generally reported to generate rather poor results, since as specialist banks, they are subject to more strict re gulation than commercial banks. There are three mortgage banks operating in Poland: HypoVereinsbank Bank Hipoteczny SA, Rheinhyp-BRE Bank Hipoteczny and Śląski Bank Hipteczny. (Gazeta Wyborcza, p. 14) A.Z.