The state should abolish the bank tax and privatize some banks – including such recommendations for the banking sector are presented by Stefan Kawalec, president of the consulting company Capital Strategy, former deputy finance minister, and one of the co-founders of the so-called Balcerowicz plan, in his new report for the Civic Development Forum.
The banking sector is the foundation of the Polish economy and its condition determines the pace and scale of economic recovery after the COVID-19 pandemic, says Stefan Kawalec.
1. Taking into account in monetary policy decisions the negative impact of very low-interest rates on the stability of the banking sector;
2. Abolition of banking tax (possibly only for new loans or only for business loans);
3. Remove tax obstacles that discourage banks from selling bad credit and hinder debt trading;
4. Introducing a special out-of-court procedure into the legal system, enabling quick and effective restructuring of companies with the prospect of profitable activity. At the request of the debtor, such a procedure could be initiated and operated by the bank, provided that it believes in the feasibility of the company's rescue plan and declares credit support during the process;
5. Statutory regulation of Swiss franc loans and guarantees regarding banks' liability towards consumers;
6. Decreasing the share of banks controlled by the State Treasury in the banking sector;
7. Monitoring and publishing efficiency indicators of banking sector loan allocation and public aid funds for companies.