Featured Product

    IMF Technical Notes Assess Financial Sector in Poland

    May 09, 2019

    IMF published, under the Financial Sector Assessment Program (FSAP), three technical notes for the Republic of Poland. The technical notes cover stress testing and systemic risk analysis, insurance sector regulation and supervision, and macro-prudential policy framework.

    Technical Note on Stress Testing and Systemic Risk Analysis. For the FSAP, a comprehensive set of stress tests and contagion analysis were conducted to assess resilience of the financial system in Poland. The FSAP risk analysis included solvency stress testing and liquidity stress testing of commercial and cooperative banks as well as interbank, cross-sectoral, and cross-border contagion analysis using both exposure and market data. The FSAP risk analysis also considered the second-round impact of interbank contagion on banks’ solvency positions. The banking system shows resilience to adverse shocks in the aggregate; however, some other systemically important institutions (OSIIs) show weakness. In the adverse case, the solvency ratio for the system (that is, common equity tier one or CET1 ratio) declined from 16.2% to 12.9% of risk-weighted assets, driven by loan-loss provisions, valuation losses on debt securities, and funding interest rate risks. The authorities should sustain supervisory attention toward weaknesses in medium-sized banks and OSIIs, including the affiliating banks of cooperatives networks, given their importance in the banking system.

    Technical Note on Macro-Prudential Policy Framework. This technical note evaluates the macro-prudential policy framework in Poland and proposes recommendations. It assesses the institutional framework underpinning macro-prudential policy, the operational capacity of the authorities to pursue such policy effectively, and the experience so far. The note also assesses the present institutional framework and looks at the systemic risk monitoring framework. Finally, it describes the macro-prudential instruments available to the authorities and assesses their application.

    Technical Note on Insurance Sector Regulation and Supervision. This technical note assesses and provides an update on regulatory and supervisory developments in the Polish insurance sector since the earlier assessment, which had concluded in 2012. The note focuses on key issues, with reference to international standards but without presenting a detailed assessment of Poland’s observance. As an update to the full assessment of observance of the ICPs of IAIS carried out by the World Bank in 2012, the note focuses on developments such as the implementation of the EU Solvency II framework in Poland from January 01, 2016. The Solvency II changes appear well-embedded, without significant exemptions or transitional arrangements. Requirements for additional reporting and for audit of the key Solvency and Financial Condition Report were added to the Solvency II minimum requirements. Market-wide risk monitoring is conducted (including annual stress testing) and insurance sector issues are considered within the financial sector macro-prudential supervisory framework. The note highlights that most recommendations of the 2012 FSAP insurance assessment have been implemented. The supervision of intermediaries has also been strengthened in line with the 2012 FSAP recommendations and further improvements were expected to take effect in late 2018.

     

    Related Links

    Keywords: Europe, Poland, Banking, Insurance, FSAP, Technical Notes, Stress Testing, Systemic Risk, Macro-Prudential Policy, Solvency II, SFCR, EU, IMF

    Featured Experts
    Related Articles
    News

    EBA Single Rulebook Q&A: Second Update for October 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to ten questions.

    October 11, 2019 WebPage Regulatory News
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3959