Regulatory Alerts2018-01-01
Recommendation T on Good Practices for Managing Risk of Retail Credit Exposures
The Polish Financial Supervision Authority (KNF) issued Recommendation T to establish good practices for managing retail credit risk, requiring banks to implement robust governance, risk identification, and internal control frameworks. The document mandates that banks, particularly those significantly engaged in retail lending, adopt standardized data usage, stress testing, and specific debt-to-income (DtI) limits to ensure financial stability. It also introduces simplified credit assessment rules for certain low-value consumer loans while enforcing strict compliance with consumer credit laws and cross-border supervisory expectations.
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