Polish banks prepared for ECJ verdict on CHF-denominated mortgages

According to the Chairman of the Polish Financial Supervision Authority (KNF), Jacek Jastrzębski, the negative ruling by the European Court of Justice (ECJ) regarding CHF loans would require banks to create additional reserves. However, he believes that banks are generally prepared for this scenario. Jastrzębski criticized the banks for not showing earlier interest in a systemic solution to the CHF loan issue and for not engaging sufficiently in settlements.

The ECJ is expected to issue a ruling on June 15, 2023, regarding the compensation for using capital after the nullification of CHF loan agreements. Jastrzębski highlighted the challenges faced by the financial sector, such as financing energy transformation, significant defense expenditures, and participating in the reconstruction of Ukraine, all of which require capital.

Jastrzębski also mentioned that banks regarded the proposed settlement solution as overly favorable for clients and excessively costly for banks.

He pointed out the moral hazard on the part of professional participants in the financial market, as they now seek assistance, claiming their importance in financing the economy.

Source: strefainwestorow.pl