The agreement between the National Bank of Poland (NBP) and the Bank Guarantee Fund (BFG), on the framework conditions on which NBP will provide the short term loans for the pay-out of the guaranteed funds to BFG, has been concluded on 19th of July 2012.
The Acts on BFG and NBP allow making the short term loans by the Fund in the central bank.
At present, there is no threat to the stability of the domestic financial system, and the financial resources of BFG place it among the best capitalized deposit insurance institutions in Europe. Signing the Agreement does not constitute BFG’s appliance for the short term loan form NBP, but its aim is to create the institutional framework, which in the case described in the Act on BFG, will facilitate getting a short-term loan from NBP. The Agreement is a part of the stability of the domestic financial system actions; moreover, it is a factor additionally strengthening the financial safety-net system in Poland.
In December 2010 the Polish Parliament has made significant changes in the Act on BFG so as to fulfil the provisions of a Directive of the European Parliament and Council 2009/14/EC of 11 March 2009 amending Directive 94/19/EC on deposit guarantee schemes in reference to the coverage level as well as the pay-out date. These changes regarded, among others, cancelling of the coinsurance, an increase of the minimum level coverage up to PLN equivalent of EUR 100, 000, as well as, what is of particular importance, shortening the pay-out period up to 20 working days (in the case of fulfilment of guarantee condition).
The BFG’s financial means for the settlement of claims by depositors are obtained, among others, from the amounts transferred (by the entities covered by the deposit guarantee system) from the funds for protection of guaranteed deposits, as well as from the mandatory annual payments paid to BFG by these entities. The source of means are also the income from interest on loans provided by BFG and interest income on securities.
