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.