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Regulatory environment

In 2013, there were significant changes in the regulatory environment of the banking sector and financial non-banking sector in Poland and the banking sector in Ukraine, where the subsidiaries of PKO Bank Polski SA operate. The financial and organisational situation of the PKO Bank Polski SA Group in 2013 was affected i.a. by the following:

  • Resolution of the Bank Guarantee Fund (BGF) Council of 21 November 2012 increasing the interest rate for determining the required annual fee paid by banks in 2013,
  • Resolutions of the Monetary Policy Council (‘MPC’) of January, February, March, May, June and July 2013 decreasing by a total of 1.75 pp.: the reference rate (to 2.5%), interest rate on refinancing loan secured with a pledge on securities (to 4.0%), the interest rate of fixed-term deposits placed by banks with the National Bank of Poland (to 1.0%) and the rediscount rate for bills of exchange accepted from banks for rediscounting by the National Bank of Poland (to 2.75%),
  • Resolution of the Polish Financial Supervision Authority (‘PFSA’) No. 53/2013 on Recommendation T concerning management of credit risk arising from exposures to households (Official Journal of the PFSA of 2013 item 11), liberalising principles of risk management, which affected a level of consumer loans,
  • Resolution of the PFSA No. 148/2013 on Recommendation S concerning management of mortgage-secured loan exposures (Official Journal of the PFSA of 2013 item 23), that introduces 1 January 2014 stricter requirements for borrowers, which affected the level of lending activity in 2013,
  • resolution No. 333/2013 of the WSE Management Board concerning the implementation from 15 April 2013 of the new UTP Detailed Exchange Trading Rules, which required adjustment of brokerage activity,
  • the Act of 23 November 2012 implementing from 1 February 2013 amendments to the Act on investment funds and the Act on supervision over the investment fund market (Journal of Laws of 2012, item 70), which constitutes the implementation of the UCITS IV Directive; the Act introduced 4 transitional periods for implementing UCITS IV, including until 1 August 2013,
  • the Act of 26 July 2013 amending the Act on the Bank Guarantee Fund (Journal of Laws of 2013 No. 1012) introducing, since 2013, additional burden on banks in the form of prudential fees paid to the Bank Guarantee Fund,
  • the Decree of the Minister of Finance of 18 February 2013 concerning Bank Gospodarstwa Krajowego granting de minimis aid in the form of a guarantee of loan repayment (Journal of Laws of 2013, item 239), which affected the level of lending activity to small and medium enterprises,
  • three Decrees of the Minister of Finance of 30 April 2013 obliging the investment fund companies (IFC) to implement by the end of July 2013 changes in the methods, procedures and terms of conducting operations and changes in making investments through closed and open investment funds (Journal of Laws of 2013, item 536, 537 and 538),
  • the Decree of the Minister of Finance of 1 July 2013 amending the level of fees paid i.a. by investment fund companies (IFC) to the Polish Financial Supervision Authority (Journal of Laws of 2013 No. 57, item. 364),
  • decisions by payment organisations: Visa and MasterCard to lower, from 1 January 2013, interchange fees for card payments which had an impact on fee and commission income of banks and clearing agents,
  • executive regulations (Regulatory Technical Standards) to the Regulation of the European Parliament and European Union Council dated 4 July 2012 on OTC derivatives, central counterparties and trade repositories – EMIR (Official Journal L 52 of the European Union), the specific scope of which became binding on 10 January and 15 March 2013.

Discontinuation of the ‘Rodzina na Swoim’ programme on financial support to families purchasing their own houses (Journal of Laws No. 168, item 1006) as of 31 December 2012 had a negative impact on the level of lending activity on the mortgage loan market in 2013, although transactions related to this programme were finalising in the first quarter of 2013.

The new legal solutions implemented in Ukraine also had an impact on the situation of the PKO Bank Polski SA Group:

  • Resolution of the Management Board of the NBU No. 479 dated 28 December 2011 establishing from 1 January 2013 the requirement specifying the ratio of regulatory capital to bank's liabilities at a level no lower than 10%,
  • Resolution of the Management Board of the NBU No. 209 and No. 315 form 2013 reducing the refinancing rate jointly by 1 pp. to 6.5%,
  • Resolution of the Management Board of the NBU No. 210 dated 6 June 2013 establishing from 1 September 2013 daily limits of cash settlements amounts for entrepreneurs and individuals, which should encourage the development of non-cash settlements,
  • Resolution of the Management Board of the NBU No. 242 dated 20 June 2013, increasing from 1 July 2013 reserves concerning current and term deposits of customers in foreign currencies, non-resident banks and decreasing required reserves held by the commercial bank on the account in the central bank,
  • Resolution of the Management Board of the NBU No. 365 dated 16 September 2013 determining the settlement rules applying to foreign currency on account of the individual (the resolution is part of the dedolarisation programme of the Ukrainian economy),
  • Resolution of the Management Board of the NBU No. 371 dated 19 September 2013 increasing, since 30 September 2013, required reserve rate of foreign currency term deposits by 2 pp., to a level of 7%,
  • Act No. 2755-VI dated 2 December 2010, reducing the income tax rate from 21% to 19% as of 1 January 2013,
  • Act No. 5519-VI dated 6 December 2012, introducing four tax rates on securities sale transactions and transactions on derivatives as of 1 January 2013,
  • the decision of the Council of Ministers of Ukraine dated 6 March 2013, determining that cash in the Ukrainian currency (UAH) is to be accepted for further transfer through banks and licensed non-banking financial institutions,
  • the decision no. 11 of the Executive Directors of the Fund for Guaranteeing Deposits of Individuals of 12 February 2013, implementing since 29 March 2013 amendments related to calculation of fees to the bank deposit guarantee system.