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 Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571