Polish financial regulator to impose higher capital ratios for forex mortgages
PR dla Zagranicy
Aleksander Nowacki
24.03.2015 17:35
The Polish Financial Services Authority (KNF) will raise capital requirements for banks with large books of foreign-denominated loans.
Safe as houses?
The Polish financial regulator said on Tuesday it would impose extra capital requirements on individual banks on a case-by-case basis.
“In connection with risks of loan portfolios, especially a high proportion of loans with a LTV [loan-to-value] ratio of over 100 percent, and in order to comply with the recommendations of the European financial supervision, KNF plans to take action with a view to influencing capital ratios of individual banks,” the financial regulator said in a press release.
It is estimated that “underwater” mortages, where the loan is higher than the price of the house, account for as much as PLN 77 billion (EUR 18.765 billion) out of the total of PLN 150 billion (EUR 36.560 billion). (an)
Source: Rzeczpospolita