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Annual report of the Bank Guarantee Fund
2020
On the basis of the available information on banks and credit unions, the Fund prepared, on a quarterly and monthly basis,
analyses concerning the economic and financial situation of the banking sector and individual banks, as well as of the
credit unions’ sector and individual credit unions, indicating the areas of potential risks.
The following issues, inter alia, were discussed at monthly meetings of the Early Warning System Committee:
results of the assessment of commercial and cooperative banks, with special attention paid to banks in a bad and
deteriorating economic and financial situation;
economic and financial situation of banks and credit unions considered to be a high risk and included in watchlists;
information on selected entities, including but not limited to problematic inspections carried out by the UKNF in selected
banks, BION assessment, and other information submitted by the UKNF, reports and publicly available reports, with
particular attention to the impact of the effects of the Covid-19 pandemic on their financial situation;
current economic and financial situation in the banking sector;
current situation in the credit unions’ (SKOK) sector, with a special focus on the situation of the largest of SKOKs.
The EWS Committee meetings also presented:
reasons for placing individual banks on the watch list and the changes in the situation of these entities since their
inclusion on the watch list;
revision of the watch list and the list of high-risk banks based on updated data;
impact of the Covid-19 pandemic on the commercial banking sector and the cooperative banking sector, including on
the area of efficiency, on the basis of data from the Reporting Information System as of 30 June 2020 and on the basis
of an analysis of the financial statements published by commercial banks for the first half of 2020;
information on banks operating outside the institutional protection schemes;
general principles of operation of institutional protection schemes: BPS Association Protection System and SGB
Cooperative Protection System;
functions of affiliating banks and their economic and financial situation;
financial situation of cooperative banks with special attention to two groups of these banks: those with the largest
balance sheet total and those showing the fastest asset growth over the last five years;
summary of the results of the review of the auditors’ opinions on the banks’ financial statements for 2019;
review of information on cooperative banks obliged to implement merger processes.
Other analytical work included, inter alia, monthly calculation and monitoring of the ratio of coverage of guaranteed funds in
banks and credit unions with the available financial resources of the BFG funds and the degree of achievement of the minimum
and target levels of funds for financing the deposit guarantee scheme and resolution.
The basic objective of the analytical activities of the Fund is to assess the financial condition of the banking sector
and of the individual banks, as well as the credit unions’ sector and of the individual credit unions, to allow early
identification of entities with a deteriorating economic and financial condition, and to get ready in advance for the
potential resolution activities or for the reimbursement of covered deposits. The Fund conducts a broad range
of analytical works with the use of the information and data from the National Bank of Poland, the Polish Financial
Supervision Authority, banks and the National Cooperative Savings and Credit Union.
Contents
Annual report of the Bank Guarantee Fund
2020
On the basis of the available information on banks and credit unions, the Fund prepared, on a quarterly and monthly basis,
analyses concerning the economic and financial situation of the banking sector and individual banks, as well as of the
credit unions’ sector and individual credit unions, indicating the areas of potential risks.
The following issues, inter alia, were discussed at monthly meetings of the Early Warning System Committee:
results of the assessment of commercial and cooperative banks, with special attention paid to banks in a bad and
deteriorating economic and financial situation;
economic and financial situation of banks and credit unions considered to be a high risk and included in watchlists;
information on selected entities, including but not limited to problematic inspections carried out by the UKNF in selected
banks, BION assessment, and other information submitted by the UKNF, reports and publicly available reports, with
particular attention to the impact of the effects of the Covid-19 pandemic on their financial situation;
current economic and financial situation in the banking sector;
current situation in the credit unions’ (SKOK) sector, with a special focus on the situation of the largest of SKOKs.
The EWS Committee meetings also presented:
reasons for placing individual banks on the watch list and the changes in the situation of these entities since their
inclusion on the watch list;
revision of the watch list and the list of high-risk banks based on updated data;
impact of the Covid-19 pandemic on the commercial banking sector and the cooperative banking sector, including on
the area of efficiency, on the basis of data from the Reporting Information System as of 30 June 2020 and on the basis
of an analysis of the financial statements published by commercial banks for the first half of 2020;
information on banks operating outside the institutional protection schemes;
general principles of operation of institutional protection schemes: BPS Association Protection System and SGB
Cooperative Protection System;
functions of affiliating banks and their economic and financial situation;
financial situation of cooperative banks with special attention to two groups of these banks: those with the largest
balance sheet total and those showing the fastest asset growth over the last five years;
summary of the results of the review of the auditors’ opinions on the banks’ financial statements for 2019;
review of information on cooperative banks obliged to implement merger processes.
Other analytical work included, inter alia, monthly calculation and monitoring of the ratio of coverage of guaranteed funds in
banks and credit unions with the available financial resources of the BFG funds and the degree of achievement of the minimum
and target levels of funds for financing the deposit guarantee scheme and resolution.
The basic objective of the analytical activities of the Fund is to assess the financial condition of the banking sector
and of the individual banks, as well as the credit unions’ sector and of the individual credit unions, to allow early
identification of entities with a deteriorating economic and financial condition, and to get ready in advance for the
potential resolution activities or for the reimbursement of covered deposits. The Fund conducts a broad range
of analytical works with the use of the information and data from the National Bank of Poland, the Polish Financial
Supervision Authority, banks and the National Cooperative Savings and Credit Union.
Contents
