Polish banking sector stable - KNF

Head of financial watchdog KNF, Andrzej Jakubiak said that the Polish banking sector is stable and the money kept in Polish banks are safe. In March, the watchdog will present its estimates regarding the costs of the FX  loans conversion law proposed by the President. Jakubiak advised banks to refrain from allocating 2014 earnings until the issue of the FX mortgage loan conversion is clarified. "I would generally prefer banks to behave rationally until the clarification of the CHF [mortgage loans] situation, taking into account that the scenario may be worse than they assume," Jakubiak said, referring to unallocated 2014 earnings. "I would suggest that they wait until the issue is clarified."