In an effort to stabilize the Polish banking sector, the government approved the amendment draft for a new banking fund at the beginning of the year. The Bank Guarantee Fund (BFG) is a special stabilization vehicle that will raise money through regional bank contributions. The state hopes to implement the new system within a year, although officials have not decided yet how much banks will be required to contribute. Analysts estimate, however, that banks could be forced to contribute up to 1 percent of their capital, based on statements made by some government officials last year. If this is the case, BFG could reach PLN 700m.
“The banks with the lower asset return will be most impacted by the new duty,” said Andrzej Powierża of Citi Handlowy. “PKO BP, Pekao and BZ WBK will not get hit by the decision, though BRE Bank, Millennium and ING Bank Śląski could be seriously impacted by this.”
