Press Release concerning an Agreement between the Bank Guarantee Fund (BFG) and Narodowy Bank Polski (NBP)
Publication date: 19-07-2012
An agreement was made on Thursday 19 July 2012 between Narodowy Bank Polski and the Bank Guarantee Fund, entitled Agreement on Establishing Framework Terms for Short-Term Loans Granted by the NBP to the Bank Guarantee Fund and Intended for Disbursement of Guaranteed Funds. The Acts on the BGF and on the NBP provide for the Fund incurring short-term debt with Narodowy Bank Polski.
There are no imminent threats to the stability of Poland’s financial system at the moment, and the financial resources of the Bank Guarantee Fund rank it among the best-capitalised deposit guarantee institutions in Europe. Thus, the execution of the Agreement is not tantamount to a request, by the BFG, for a short-term loan with the NBP. Instead, it aims to establish an institutional framework, which, under the circumstances described in in the Act on the BGF will facilitate the extension of such a loan. The agreement is part and parcel of the activities in support of the country’s financial stability and an additional safety feature of the financial system security network in Poland.
To comply with the provisions of the European Parliament and Commission Directive 2009/14/WE of 11 March 2009, amending Directive 94/19/WE concerning the system for deposit guarantees with regard to the level of guarantee and payment time, in December 2010 the Polish parliament made substantial amendments to the Act on the BFG. The changes involved, among others, raising the sum guaranteed to the equivalent of EUR 100,000, abolition of depositor’s own contribution, and, most significantly, shortening the deadline for the disbursement of the guaranteed funds by the BGF where the guarantee conditions have been met.
BFG funds intended for settlement of depositors’ claims derive, among others, from amounts contributed to the guaranteed funds protection fund by the entities covered by the guarantee system, from the obligatory annual fees paid by these entities to the Fund, income from interest received on loans extended by the Fund as well as income on securities.