Directions of Change in the System of Creation of Adjusted Reserves in the Polish Banking Sector

• Autorzy: Jan Koleśnik
• Języki publikacji: EN

Abstrakty

EN

Recapitulating the changes that took place in the system of creation of adjusted reserves in Poland, one needs to emphasise, that the question of creating adjusted reserves has been treated more as an element of general evaluation of assets than limiting credit risk in banks, ever since the 2000 amendment to the act on accounting. Although the law-making prerogatives for this area belong to the Minister of Finance, it was the General Inspectorate of Banking Supervision (the executive body of the Commission for Banking Supervision), which prepared the act - due to its experience in legislative work concerning the subject. In spite of the presented reservations concerning the transfer of prerogatives to appoint principles of creation of adjusted reserves in Poland, I believe that the principles of creating reserves introduced by the Minister of Finance will have a significant influence upon reduction of the total level of adjusted reserves. According to the Ministry of Finance, as a result of introducing regulatory changes, the total value of high risk credit exposures can decrease by on average 7 percentage points, i.e. by about PLN 15.3 billion. This can consequently lead to a reduction of the total level of adjusted reserves by, on average, PLN 1.3 billion. I am convinced, that the changes introduced by the Minister of Finance are beneficial not only to banks, but to the entire economy. The reduced level of adjusted reserves will result in a better financial balance of banks, and the changed level of high-risk receivables will significantly improve quality of credit portfolio, and increase banks' inclination to finance firms. The simplified procedures concerning small denomination credit involvements encourage banks to credit the sector of small and medium-sized companies. The provisions of the decree will contribute to improved competitiveness of the Polish banking sector at international level, where more liberal solutions concerning creation of adjusted reserves are common. Recapitulating, I believe, that implementation of the new principles of creating adjusted reserves will positively influence both the internal and the external competitiveness of the Polish banking sector, which is extremely important, especially in the context of Polish accession to the European Union. (author's abstract)

Słowa kluczowe

EN

Finance; Banks; Banking risk; Bank reserves

PL

Finanse; Banki; Ryzyko bankowe; Rezerwy bankowe

• Czasopismo: Studia i Prace Kolegium Zarządzania i Finansów / Szkoła Główna Handlowa
• Rocznik: 2005
• Numer: z. 53
• Strony: 29--41

Twórcy

autor

Jan Koleśnik

• Szkoła Główna Handlowa w Warszawie

Bibliografia

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• Koleśnik, J., Zygierewicz, M. Wpływ zmian w polityce pieniężnej, podatkowej oraz regulacji ostrożnościowych i działalności Bankowego Funduszu Gwarancyjnego na działalność banków w 2003 roku, Związek Banków Polskich, Warszawa 2004, p. 31.
• Raport o sytuacji ekonomicznej banków - Banki 2003, Polish Bank Association, Warsaw 2004, p. 15.
• Zaleska, M., Wpływ wybranych regulacji zewnętrznych na działalność polskich banków, Szkoła Główna Handlowa, Warsaw 1999, p. 103.