Watchdog KNF will ease lending rules to boost borrowing
October 16, 2012
Poland’s financial market regulator KNF may relax requirements for credit worthiness procedures in banks which sported capital adequacy ratio of above 12% and Tier 1 ratio of above 9% during the last six months, KNF head Andrzej Jakubiak told a news conference on Monday.
The goal is "to enable lending growth of banking sector vis-a-vis lending institutions from outside the regulated sector," the KNF chief said.
Key elements of the new proposal contained in draft recommendation T include separation of regulations on cash loans from regulations on mortgage lending, elimination of stiff debt to income thresholds, simplified credit procedures for smaller sums or for clients with long-term relationships with the lending bank, creation of strictly defined stress tests and definitions of "significantly engaged" banks in the segment for whom regulations might be tighter, a KNF letter to banks shows.