Thursday , November 26 2020

Changes to the Banking Acquisition Act may be subject to the Constitution

In particular, this is a draft "Law amending certain laws in connection with the strengthening of financial market supervision and investor protection in this market". During the meeting of Sejm's Public Finance Committee on November 8, an amendment consisting of on the extension of the banking act the law on the whole chapter Free "Bank Transfer". The law in the version of the amendment was later on November 9, voted in Sejm, mainly by the votes of PiS.

It is only that the change was introduced after Sejm's first reading. Sejm's Legislative Presidency, held by the Civil Platform Party, Krystyna Skowroska, warned that This violates the principles of proper lawmaking.

Now the same thing will be repeated in accordance with Senate legislation. BLS points out that, according to the Constitution, the basic content that ultimately forms part of the law must review Parliament's procedure to avoid time and opportunity to suspect the solutions adopted and to take a stand against them. "

These provisions of the revised Act, which are adopted as a result of the adoption of amendments from second reading in Sejm, and which are not related to the subject of the original provision [chodzi tu wanie o podrozdzia “Przejcie Banku” w ustawie Prawo bankowe- red.]may be charged with breaking article 118 para. 1 and Art. 119 para. 1 in the Republic of Poland's constitution

"We are reading the opinion of the Senate legislature, who will address this question to the Constitutional Court's judgment. Articles 118 mom. 1 and Art. 119 para. 1 – what senate legislation is writing – says it "The legislative initiative is for Posos, the Senate, the Republican President and the Council of Ministers" and "Seym considers the bill in three readings."

By 16 November, the Senate Committee on Public Budgets and Finance will examine the draft amendment to "certain laws in connection with the strengthening of financial market supervision". The Senate deals with this document at its meeting on 21-23 November.

What is the controversial amendment about?

The way to introduce changes to the bill raises constitutional doubts (however – in the margins – many projects raised them if the vacancy was November 12, and they were still convinced). Confusion with the change regarding the takeover of banks by administrative decision of the Financial Supervisory Authority coincides with the outbreak of the KNF scandal, which reveals "Gazeta Wyborcza" – as one of the themes of Leszek Czarnecki talks with Marek Chrzanowski, A scenario for a possible takeover of Getin Noble Bank by another bank, probably a state bank. In addition, a "wypyn" letter from Chrzanowski to the Ministry of Finance, where the head of the KNF already asked about priority, including rules on takeover of banks.

The rules of the change can actually sound like a group. They should have it gives Polska Finansinspektionen the right to make a decision on the transfer of a certain bank (by another), if the sum of own resources falls below the level rules, or "there is a risk of reduction", this amount is below the statutory level.

It is only worth noting that, in fact, it would only restore the principles introduced for the implementation of the EU BRR Directive from 2014. Following the introduction of the provisions of this document, they found that they are not quite successful and should extend the spectrum of regulatory instruments to an early response, even before commencing the restructuring process (the Bank Guarantee Fund is responsible for this). In addition, the principles of May amendments apply only to the smallest commercial and cooperative banks – totaling up to 3 billion euros of assets.

KNF's chairman Marek Chrzanowski wants to correct the change due to the lack of tools for effectively implement several cooperative banks in a bad situation – partly because of the expiration of existing agreements for their association at the end of the year. A similar mechanism, known as the resolution, is already in Polish law, but it is only about the situation when the collapse of the bank would jeopardize the whole sector – and so does not apply to smaller banks, including Spdzielczych.

It's an idea from June

It is also worth noting that the changes to the Bankruptcy Act on the acquisition of banks are not new at all. The proposal for exactly the same items currently commented is already in the draft Ministry of Finance from June this year. in the "Draft Act amending the Financial Market Supervision Act and certain other acts". Even though the Polish Central Bank considers it worthwhile to refresh the project to explain why a system was decided on other than that defined in the Bank Guarantee Fund Act, Deposit Guarantee and Force Proceedings of another bank.

This includes, inter alia, no obligation to consult UOKiK, the choice of PTA selection by the acquiring bank and no obligation to estimate the value of assets and liabilities of the transferable bank before the decision was taken by PFSA for the transfer of a bank by another bank

– NBP clarification.

In the end, however, this finance ministry's project will not go to Sejm, but another – which legislative path begins first in the step-by-step of the Council of Ministers. On the other hand, the owls about changes in the banking act regarding the takeover of banks by the PFSA decision were no longer the case.

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