Polish supervisor says banks should maintain strong capital base

//Polish supervisor says banks should maintain strong capital base

Polish supervisor says banks should maintain strong capital base

By | 2014-09-25T22:40:44+00:00 September 25th, 2014|Business|0 Comments


WARSAW, Sept 25 (Reuters) – Polish banks should maintain
their strong capital base and some of them should increase their
capital given the risks accumulated in balance sheets and
economic uncertainty, supervisor KNF said on Wednesday.

In a report on the first half of 2014, KNF said Poland’s
banking sector Tier I capital ratio reached 14.1 percent,
significantly above new European requirements.

“Despite the good current situation, keeping a strong
capital base is recommended, and in case of some banks
strengthening of capital is recommended, which results from the
level of risk accumulated in banks’ balances,” KNF said.

KNF said banks with a Tier I ratio lower than 9 percent
accounted for 6.2 percent of total banking sector assets.

It also cited economic uncertainty and the fact that some
creditors were bringing legal cases against banks.

Thousands of Polish home-buyers took out Swiss
franc-denominated mortgages in the years before 2008, only to
see the value of the franc soar and the value of their home fall
when the global financial crisis took hold.

Many of these creditors are now suing their banks for
damages.

(Reporting by Marcin Goettig; Editing by Ruth Pitchford)