12:13 31 May 2023
Unfavorable ruling on CHF mortgage loans will force banks to increase reserves
An upcoming ruling by the Court of Justice of the European Union (CJEU) on compensation for CHF loans could have significant consequences for the banking sector, according to Białek, the head of the Polish Bank Association. He stated that if the ruling aligns with the Advocate General's opinion, it would adversely affect the sector's financial condition, ability to finance the economy, and current lending capabilities. However, Białek believes that the ruling is unlikely to increase the number of borrowers pursuing legal action against banks. The CJEU's decision, expected on June 15, follows the Advocate General's opinion that consumers can seek claims beyond monetary reimbursement if their loan agreements were annulled due to unfair terms.
The Polish Financial Supervision Authority (KNF) estimated that a negative ruling could necessitate additional reserves, potentially costing banks around PLN 100 billion.
Source: PAP Business
