The General Inspectorate of Banking Supervision (GINB), which is organisationally autonomous within the structure of the NBP, constitutes the executive agency of the Commission for Banking Supervision; as such, it is responsible for supervising the operations of the banks to ensure the safety of the deposits held by them and the stability of the banking system as a whole, while at the same time guaranteeing the banks sufficient freedom and flexibility in taking business decisions, along with a level playing field as regards the basic financial parameters of their participation in financial markets.

The responsibilities of the General Inspectorate of Banking Supervision include:

• performing activities related to the authorisation of banks, and monitoring their ownership structure and the adequacy of management,
• monitoring the financial soundness of the banks through the prudential reporting system,
• drafting prudential regulations for the banking system which specify permissible or recommended norms for banking operations in terms of capital adequacy and exposure to banking risk, the latter including credit risk, FX risk, liquidity risk, etc.,
• carrying out on-site examinations of the banks to review their financial condition, risk exposure and the adequacy of risk management, and also compliance with the provisions of the Banking Act, the Act on the NBP, the given bank's articles of association, and the authorisation given to establish the bank,
• initiating supervisory measures in respect of problem banks, and performing such measures at the request of the Commission for Banking Supervision, including monitoring rehabilitation programmes and proceedings, and in the event of insufficient progress being achieved in the bank's financial condition or capital position - applying to the Commission for Banking Supervision for further action to be taken pursuant to the provisions of the Banking Act (with a view to the bank's liquidation, bankruptcy or merger),
• performing consolidated supervision of banks that operate within the structures of holdings, including cooperation with foreign agencies of banking supervision.

The objective of the prudential supervision conducted by the Commission for Banking Supervision and implemented by the General Inspectorate of Banking Supervision is to monitor and curtail excessive exposure by the banks to various risks that could impact negatively on the safety of the deposits entrusted to them and threaten the stability of the financial system. The approach of GINB allows and assumes the taking of risk by the banks, while at the same time analysing whether the scale of this risk remains in reasonable proportion to the capital employed by the bank, the earnings it generates, the level of provisions it has established, and the quality of its risk management systems. The work of the Commission for Banking Supervision and GINB does not absolve bank management of ultimate responsibility for the institution they direct, since GINB makes no claim to any rights or responsibilities with respect to the day-to-day running of a bank.

The primary tools used by GINB in performing the tasks entrusted to it by the Commission for Banking Supervision include: the relevant professional assessment of the adequacy and qualifications of bank management (as part of the process of authorising banks and reviewing the composition of management and structure of ownership); the development of regulations limiting risk exposure (including risk-based capital requirements and limits on net open FX positions); monitoring the financial condition of the banks through the periodic reports they submit to the NBP and identifying any indications of potential threats to soundness; the performance of on-site examinations at the banks in order to evaluate the quality and methods of risk management, and compliance with statute and sound banking practice.

Fulfilment of the objectives and responsibilities outlined above is undertaken by the General Inspectorate of Banking Supervision (headed by the General Inspector of Banking Supervision) through the offices of five organisational divisions: Licensing, Supervisory Policy, Banking System Off-Site Analysis, On-Site Examinations, and Cooperative Banking.

Other responsibilities of GINB include:

• collaborating with the Basle Committee on Banking Supervision, including participation in its Regional Group of Banking Supervisors from Central and Eastern European Countries, and also in the Consultative Group on the Core Principles for Effective Banking Supervision,
• collaborating with other agencies and institutions of banking supervision worldwide, including collaboration with regard to cross-border banking and consolidated supervision,
• collaborating with international financial institutions, including the World Bank and International Monetary Fund, with respect to issues of banking supervision and banking sector stability,
• collaborating and exchanging information with other Polish financial regulators, such as the Securities and Exchange Commission, the Insurance and Pension Funds Supervisory Commission, the State Agency for Insurance Supervision, and also with other institutions operating within the financial sector, such as the Bank Guarantee Fund, the Polish Banking Association, the National Chamber of Certified Auditors and rating agencies,
• updating and improving prudential reporting in the framework of the Bank Statistical Information System (BIS),
• performing periodic assessments of the financial condition of the banking system for the Commission for Banking Supervision, the NBP Management Board, parliament and the Government,
• developing a methodology for the supervisory analysis and assessment of the financial condition of banks (off-site surveillance), and a methodology for the assessment of banking risks and risk management methods, for application during on-site examinations,
• developing guidelines for the banks, and providing ongoing guidance to them, with respect to the compilation of prudential reports, this being done by means of correspondence and also by periodic meetings and training courses,
• developing and publishing recommendations concerning prudential standards for risk management and sound banking practice.