Deposit insurance Poland
Polish and German banking system – the
main features Both banking systems are two - tier ones, i.e. there are
banks and the central bank, responsible
among others for the monetary policy. Polish banking system had a long
break from market economy and about ten years ago two fundamental acts
were passed by the Polish Parliament:
the Banking Act and the Act on the National Bank of Poland (central bank).
Both allowed starting the new era for the Polish banking system. The
German banking system has obviously much longer tradition in performing
in the market economy.
their relatively short history, deposit insurance schemes (DISs)
are currently a common element of the banking system. In
2004, 83 explicite DISs operated around the world. The Bank
Guarantee Fund (Bankowy Fundusz Gwarancyjny – BFG) – the
Polish institution guaranteeing household deposits – is
celebrating its 10th anniversary this year. Over its 10
years of active operation the BFG has proved that, along
with the National Bank of Poland and the Commission for
Banking Supervision, it is among the most important
institutions protecting the Polish financial system from
destabilisation. The introductory part of this paper
presents the position of the Bank Guarantee Fund within the
Polish financial safety net. Other guarantee schemes
operating in the Polish financial services sector have also
been presented. Moreover, the paper explains the reasons for
the launching of a DIS and points out the purposes for the
establishment of the BFG. Further, it describes the
evolution of Polish deposit guarantee arrangements since
1982. Special emphasis has also been put on the analysis of
Bank Guarantee Fund administration. The main aim of this
paper is to describe Polish deposit insurance scheme.
Particular features of the Polish scheme are discussed with
reference to the Community regulations in this field and
also arrangements adopted in the remaining 24 countries of
the European Union. The third chapter of this paper
describes the fundamental area of the Fund’s activity, i.e.
guarantee activities consisting in making compensation
payouts to depositors in the event of a bank’s bankruptcy.
The scope of coverage (eligible types of deposits and
depositors) offered by the Polish scheme has been analysed.
The scope of the BFG’s guarantee activities from 1995 to
2004 has also been presented. In the fourth chapter, the
BFG’s activities aimed at minimising risk in the banking
sector have been presented. The principles and experience of
the Fund regarding financial support for the rehabilitation
of banks threatened with insolvency have been discussed in
greatest detail here. The fifth chapter describes the
principles and procedures regarding the financing of
guarantee and assistance activities of the Bank Guarantee
Fund. In the summary, the paper indicates possible
directions for changes in the BFG legislation. It has been
pointed out that despite the fact that Polish regulations
comply with EU requirements,they must be adjusted to suit
the changing domestic conditions.
The biggest German banks are at the top
of the list of the biggest banks of the world, while the biggest Polish
ones are in the fourth hundred of these banks’ list (according to “The
There have been recently a lot of changes in the ranking due to the bank
mergers and acquisitions. Because of great differences in size between
both systems I decided not to compare them2. Below I shall point out
some features connected with the legal forms and the types of banks.
In Poland - according to the Banking Act - banks can be organised, as
the joint –stock company, co-operative entity or the state - owned
enterprise3. In Germany no specific legal form for conducting banking
business is stipulated in the Banking Act, although since 1976 banks
have been not allowed to operate in the form of sole proprietorship.
So in fact, there more legal forms for creating the bank in Germany, but
some of them have rather historical meaning (e.g. general partnership or
limited partnership, which are used by the private bankers).
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