Regulatory Alerts2023-01-01
Recommendation S on Good Practices for Managing Mortgage-Backed Credit Exposures
The Polish Financial Supervision Authority (KNF) issued Recommendation S to establish good practices for managing mortgage-backed credit exposures, specifically requiring banks to offer fixed-rate or periodically fixed-rate mortgage products to retail clients. The regulation introduces strict risk management rules for 'key for debt' loans and mandates that banks enable existing variable-rate borrowers to switch to fixed-rate formulas. Banks must align their product offerings with their risk appetite, ensure adequate consumer education, and report their specific mortgage product categories to the regulator.
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