Influence of introduction of maximum limits for interest rates on credits upon the conditions of operation of Polish banks and their clients in the context of European experiences
Introduction of maximum limits of interest rates on credits adversely affects economic development, conditions of operation at the financial market, and limits accessibility of certain types of credit, which, considering low level of banking penetration in the Polish society, raises doubts. Introduction of regulations concerning maximum limits of interest rates on credits has more effect upon the operation of co-operative banks than of joint-stock companies due to their lesser capacity to shape prices of low-value credits and their servicing less affluent customers than in the case of joint-stock banks. At the same time, the influence of the maximum limits of interest rates on credits upon the conditions of operation will, in practice, concern solely the market of consumer credits and credit cards. The issue of the level of interest rates, commissions and charges ought not be regulated by legal acts, but should be sorted by market mechanisms. The inevitable increase of competition at the banking market will naturally force a tendency for lowering cost of credit products and services. From the day of Poland's joining the European Union until August 2005, 91 credit institutions registered their operation27 , which indicates an increase of the number of financial institutions operating in Poland, and implementation of the principle of a single banking passport. Recapitulating, it ought to be the increased competition rather than introduction of imprecise regulations on maximum limits of interest rates on credits, that should determine prices of credit (this has been confirmed by research conducted by the US National Commission on Consumer Finance28). However, the following actions aimed at development of the credit market in Poland would be welcome: • educating the society on skilful use of financial products and services, including credits, • further development of economic/credit information offices, • creation of consistent, materially correct legislation concerning regulation of operation of institutions at the financial (credit) market, as well as the rights and duties of consumers (e.g. a possibility to declare bankruptcy). (author's abstract)
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- The Act changes the following acts: the Act of 29.06.1995 on bonds, the Act of 20.07.2001 on consumer credit, and the Act of 28.10.2002 on responsibility of collective bodies for punishable acts.
- Pietkun P., Fałszywy klejnot, "Gazeta Bankowa", No. 29 (873) of 18-24.07.2005.
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