Forum Ekonomiczne

„Rzeczpospolita” na Forum Ekonomicznym w Karpaczu 2024

Tadeusz Białek: WIBOR cannot be challenged

Law firms are continuing to explore new opportunities, attempting to challenge WIBOR, but it remains a difficult task. Borrowers need to be aware of this before pursuing legal action and paying them for their “services”, according to dr Tadeusz Białek, President of the Polish Bank Association.

Publikacja: 05.09.2024 04:28

dr Tadeusz Białek, President of the Polish Bank Association

dr Tadeusz Białek, President of the Polish Bank Association

Foto: Paweł Woźniak

Recent months have demonstrated that banks have benefited from high interest rates, with a significant boom in new lending.

The high interest rates are a result of the Monetary Policy Council’s decision, and the banking sector has no influence on this. Interest rates influence lending rates, but it is important to remember that banks also need to allocate larger amounts on the deposit side. The banking sector is not solely a beneficiary of these interest rate levels, it also results in reduced credit availability while higher interest rates mean fewer borrowers.

Lending has also been impacted by the way the bank tax is designed. We have reached historic lows in corporate financing, and this is all down to the flawed design of the bank tax, constructed to apply to assets rather than, as in all Western European countries, to liabilities. Banks face higher tax rates with increased lending while, conversely, tax exemptions on government bonds have led banks to heavily invest in them. This is advantageous from the State Treasury's perspective, given the record borrowing needs. However, it has also made us the leading European country in terms of banking sector involvement in the public sector. This is not a positive development, as it leads to reduced lending.

You have been advocating an overhaul of the bank tax for several months. Is there any ongoing dialogue with the government?

Yes, but reversing something that has been in place for eight years is not an easy task. Our data since 2016 reveals a steady decline in the banking sector's involvement in lending to the economy, reaching a historic low. The corporate loan portfolio in relation to GDP is just 11.48%. This is a situation that needs to be addressed. While the government is aware of the issue, overhauling this construct will take time. I hope the tax redesign can be implemented while maintaining the neutrality of the state budget. We understand that, given the current debt levels, the State Treasury cannot afford to lose revenue. Redesigning the tax should benefit the economy by enhancing the banks’ lending capacity.

Does the Polish housing market need support, such as the #naStart loan currently under government discussion?

We aim to remain neutral in the discussion by limiting ourselves to providing expert knowledge, as banks merely operate the state’s subsidy system for the borrowers, who are the main beneficiaries of this type of programme. Every EU country has similar measures to support young families in purchasing their first home. Without external incentives like interest rate subsidies, some borrowers cannot afford to buy their first home when and where they would like.

Some lawyers believe that the banking sector faces a looming issue with loans linked to WIBOR, particularly those granted in zloty. We are awaiting the CJEU’s decision, but what is the Polish Bank Association's stance on this issue?

In our view, this is not a genuine problem but rather an issue artificially created by law firms seeking new opportunities. With the Swiss franc loan cases gradually winding down, law firms are actively seeking new areas to pursue. The first WIBOR-related lawsuits emerged two and a half years ago, but the number of cases remains relatively small. With over 2.3 million active loans, there are just over 1,000 court cases, which is just a drop in the ocean. Clients recognize that there is little to be gained and are not swayed by law firm offers driven more by profit than by genuine consumer interest.

WIBOR is one of the five key rates in the EU, it is explicitly named in the EU’s Benchmark Regulation (BMR) and thus forms part of EU law. It has been under administrative oversight by the PFSA for years, who have repeatedly stated that there is no basis for challenging WIBOR. There have never been any irregularities in the functioning of this index. Of the cases mentioned, 32 have reached final judgments, all of which have dismissed the lawsuits. There is a great deal of confusion, as law firms are attempting to equate judgments unrelated to WIBOR with the initial rulings challenging WIBOR. This is false information and, essentially, outright lies, which we have repeatedly debunked. Law firms attempt to attract new clients at any cost, dragging out cases for years and charging fees in the tens of thousands of zlotys.

Are you not concerned that the CJEU might side with consumers, for instance by highlighting provisions that lead to an unequal distribution of risk between the bank and the customer?

The question posed to the CJEU by the court in Częstochowa is flawed because it is biased in nature. Instead of inquiring whether there were grounds to challenge the index, the court effectively expressed its own opinion. It is as if a judge, during a trial, already knew the final verdict and said what it would be. Such a situation should not occur.

I find it hard to imagine the CJEU questioning an index that is integral to EU law. This is unlikely to happen. There may be appeals to have national courts assess, on a case-by-case basis, whether customers were adequately informed of the risks associated with interest rate changes. The second most common allegation in WIBOR cases is that customers were allegedly unaware that their loan instalments might increase with changes in interest rates. This is despite the fact that Polish banks adhere to clear regulations and meet extended information obligations, as outlined in the PFSA’s recommendations, which include providing forecasts on how loan instalments could rise if interest rates increase.

materiały prasowe

.

Recent months have demonstrated that banks have benefited from high interest rates, with a significant boom in new lending.

The high interest rates are a result of the Monetary Policy Council’s decision, and the banking sector has no influence on this. Interest rates influence lending rates, but it is important to remember that banks also need to allocate larger amounts on the deposit side. The banking sector is not solely a beneficiary of these interest rate levels, it also results in reduced credit availability while higher interest rates mean fewer borrowers.

Pozostało 90% artykułu
Forum Ekonomiczne
Bezpieczeństwo młodych w sieci. Wyzwania i kierunki działań
Forum Ekonomiczne
Online safety for young people. Challenges and courses of action
Forum Ekonomiczne
Nowoczesna opieka zdrowotna musi opierać się na współpracy
Forum Ekonomiczne
Jens Jakob Gustmann, Philips: Nie ma odwrotu od cyfryzacji w opiece medycznej
Forum Ekonomiczne
Stephan Schraff, Bayer: Wzmocnienie konkurencyjności to kluczowa kwestia w Europie
Forum Ekonomiczne
Zielone technologie potrzebują wsparcia finansów i przepisów