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Thursday, February 22, 2024

CHF loans – judgments of the CJEU. Head of the Polish Financial Supervision Authority: we do not assume a bank failure scenario

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We do not assume a bank failure scenario following the judgments of the Court of Justice of the European Union (CJEU) on CHF loans, said the head of the Polish Financial Supervision Authority (KNF), Jacek Jastrzębski. In his opinion, the Polish banking sector is well capitalized and has relatively good liquidity.

– We do not assume such a scenario and we are convinced that we have in our hands, in the hands of the security network, all supervisory tools to prevent such a scenario – said the chairman of the KNF on RMF FM when asked what would happen if a bank collapsed after the judgments of the CJEU. In the opinion of the chairman of the KNF, converting CHF loans into PLN is a fair solution for CHF borrowers, i.e. a solution that was included in the settlement proposal for CHF loans promoted by the KNF, consisting in converting loans and treating them as if they had been in PLN from the beginning. Jastrzębski emphasized that the Polish banking sector is well capitalized and has relatively good liquidity.

Read more: “This has been the biggest deterrent to consumers from suing banks so far” >>>

Judgment of the CJEU

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The Court of Justice of the EU issued on Thursday two judgments in cases brought against banks by consumerswho took loans denominated in Swiss francs. The CJEU found that the bank does not have the right to demand compensation from the consumer that goes beyond the return of the capital paid out and that the courts may order an interim measure in the form of suspension of loan installments during the trial to determine the unfair nature of the contract terms.

Read more: What do the judgments of the CJEU mean for franchise holders? >>>

After the announcement of the judgment, the KNF Office announced in a communication that it expects banks to take into account the CJEU ruling in their models of creating provisions for legal risk related to the portfolio of mortgage foreign currency loans and still expects banks to take an active stance in the field of systemic solution to this problem in the form of offering settlements to clients.

According to the data of the Credit Information Bureau (BIK), the number of active Swiss franc loans decreased by nearly 46.5 thousand in 2022, and the value of repayments decreased by over PLN 5.5 billion. However, there are more and more lawsuits in cases concerning loans in Swiss francs. According to experts, their number may increase even more after the CJEU judgment is favorable for borrowers.

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