Marcin Mikołajczyk – Deputy Chair of the KNF – spoke at the Banking Forum organised by the Polish Bank Association. He gave an introductory speech to the session ‘Regulatory challenges of the banking sector’.

Marcin Mikołajczyk has emphasised that regulations and banks’ capacity to finance economy tend to be perceived as two competitive forces, while from the supervisory perspective, they should form a coherent system. In fact, the aim of regulations is not to restrict the development of banks or innovations but to build stable and safe foundations that will enable an even and long-term growth of the entire sector. In this context, he has pointed out that the current situation of banks is good, which is a solid point of departure for further reinforcement of their role in economy-financing. 

When  talking about regulatory changes, Marcin Mikołajczyk has mentioned the paramount importance of the benchmark reform, whose key element is the introduction of the new POLSTR benchmark and gradual departure from WIBOR, in particular in products addressed to retail clients. He has emphasised that the success of the reform largely depends on the activity of the banking sector, being the main user of benchmarks. He also mentioned the judgment of the Court of Justice of the European Union. The ruling shows that strong regulatory framework may protect the financial system against legal risks and strengthen confidence in the market. 

Another issue raised by the Deputy Chair of the KNF was Recommendation WFD and upcoming changes in its calibration. Marcin Mikołajczyk has emphasised that even though modifications in the recommendation are necessary, they do not affect its general philosophy, which is supposed to support the stable financing of banks and the development of long-term instruments, including covered bonds. 

He also pointed to European initiatives, such as the Omnibus package, whose aim is to simplify excessive reporting obligations and limit overregulation, in particular in the ESG area. In this context, he has emphasised the announcement of creating a common European platform for Pillar 3 disclosures, aimed at enhancing transparency and facilitating comparability of financial institutions. 

Marcin Mikołajczyk also referred to Basel III standards and new AML regulations. He has highlighted that even though capital and supervisory requirements in this area are strict, they were designed so as not to close the path to competitiveness and economy-financing. In the AML area, he mentioned in particular the growing role of international cooperation and the establishment of the new European supervisor, which will be shaping standards in this domain. Those changes pose a major organisational challenge but are necessary for the security of the financial system. 

When summing up his speech, Marcin Mikołajczyk emphasised the importance of effective regulations. They should serve as a solid cornerstone – they should not hamper the activities of banks but build stability and confidence that will allow economic development and innovations to be financed. The key is the partnership between the supervisory authority and the banking sector, founded on dialogue and common pursuit of solutions. He has emphasised that the slogan accompanying the 20th anniversary of the KNF’s functioning, that is ‘Silny nadzór, bezpieczny rynek’ [strong supervision, safe market], reflects the common goals of the supervision authority and the market, including the goal that the banking sector should not only be safe and resilient to shocks, but also ready, capable and willing to finance the aspirations of the Polish economy.

The presentation shown during the speech by Marcin Mikołajczyk is available here.