Page 4
P. 4
4
Annual report of the Bank Guarantee Fund
2020
1. Foreword from the Chairman of the Council
and the President of the Management Board
of the Bank Guarantee Fund
Dear Sir/Madam,
On behalf of the Council and the Management Board of the Bank Guarantee Fund, we have the honour and pleasure
to present the Annual Report of the BFG for 2020.
Guaranteeing deposits is one of the fundamental pillars of our business. We are always ready to reimburse covered
deposits if a bank or credit union (SKOK) goes bankrupt, but there was no such event in 2020. This does not mean that the
past year was an uneventful one. Quite the contrary – there were a few important events.
For several years, the Fund has been preparing for the role of a resolution authority. We have been building our own
competences, creating teams of employees and preparing plans for the resolution. In 2020, it was time to act. In January
we started the resolution of Podkarpacki Bank Spółdzielczy w Sanoku. In late April and early May, we initiated this
procedure against Bank Spółdzielczy w Przemkowie, and on the last day of the year we started the resolution of Idea Bank
S.A. Each of these processes was different, but in each case the poor situation of the banks required action. When the
statutory conditions are met, the BFG must act and it did so in each of these cases.
We can state with great satisfaction that 2020 confirmed the effectiveness and credibility of the resolution
as an instrument that ensures the stability of the financial sector in Poland, as well as the competence of the BFG as the
resolution authority. This is all the more noteworthy as, in the case of Bank Spółdzielczy w Przemkowie and Idea Bank S.A.,
we acted in the circumstances of an epidemic and concomitant unprecedented socio-economic situation. When summing
up 2020, we can safely say that we have become the EU leader in the delicate, complicated and demanding process
of resolution, which requires great competence and commitment. The success of these processes has been due to the
hard work of many people in the Fund. We would like to thank them once again for their professionalism and commitment.
When speaking about the resolution, it should be added that in 2020 the Fund reviewed resolution plans and carried
out resolvability assessment for 13 commercial banks, 209 cooperative banks, 2 affiliating banks, 11 credit unions and
7 investment companies. The Fund also updated the resolution plans for 2 cooperative banks.
The Fund maintained its high efficiency in recovering amounts due to the liquidation of entities in respect of which the
guarantee condition had been fulfilled. In 2020, the Fund recovered nearly PLN 131.5 million on that account. Overall,
in the course of bankruptcy proceedings, the Fund recovered a total of PLN 1,004,781.2 million by the end of 2020, which
is 15% of the Fund’s claims pending in bankruptcy proceedings.
Contents
Annual report of the Bank Guarantee Fund
2020
1. Foreword from the Chairman of the Council
and the President of the Management Board
of the Bank Guarantee Fund
Dear Sir/Madam,
On behalf of the Council and the Management Board of the Bank Guarantee Fund, we have the honour and pleasure
to present the Annual Report of the BFG for 2020.
Guaranteeing deposits is one of the fundamental pillars of our business. We are always ready to reimburse covered
deposits if a bank or credit union (SKOK) goes bankrupt, but there was no such event in 2020. This does not mean that the
past year was an uneventful one. Quite the contrary – there were a few important events.
For several years, the Fund has been preparing for the role of a resolution authority. We have been building our own
competences, creating teams of employees and preparing plans for the resolution. In 2020, it was time to act. In January
we started the resolution of Podkarpacki Bank Spółdzielczy w Sanoku. In late April and early May, we initiated this
procedure against Bank Spółdzielczy w Przemkowie, and on the last day of the year we started the resolution of Idea Bank
S.A. Each of these processes was different, but in each case the poor situation of the banks required action. When the
statutory conditions are met, the BFG must act and it did so in each of these cases.
We can state with great satisfaction that 2020 confirmed the effectiveness and credibility of the resolution
as an instrument that ensures the stability of the financial sector in Poland, as well as the competence of the BFG as the
resolution authority. This is all the more noteworthy as, in the case of Bank Spółdzielczy w Przemkowie and Idea Bank S.A.,
we acted in the circumstances of an epidemic and concomitant unprecedented socio-economic situation. When summing
up 2020, we can safely say that we have become the EU leader in the delicate, complicated and demanding process
of resolution, which requires great competence and commitment. The success of these processes has been due to the
hard work of many people in the Fund. We would like to thank them once again for their professionalism and commitment.
When speaking about the resolution, it should be added that in 2020 the Fund reviewed resolution plans and carried
out resolvability assessment for 13 commercial banks, 209 cooperative banks, 2 affiliating banks, 11 credit unions and
7 investment companies. The Fund also updated the resolution plans for 2 cooperative banks.
The Fund maintained its high efficiency in recovering amounts due to the liquidation of entities in respect of which the
guarantee condition had been fulfilled. In 2020, the Fund recovered nearly PLN 131.5 million on that account. Overall,
in the course of bankruptcy proceedings, the Fund recovered a total of PLN 1,004,781.2 million by the end of 2020, which
is 15% of the Fund’s claims pending in bankruptcy proceedings.
Contents
