Komentarz UKNF do wyroku TSUE w sprawie C-520/21

Following a final decision in case C-520/21 by the Court of Justice of the European Union, the Polish Financial Supervision Authority (KNF) has published a press release in which it expresses strong concerns about the judgement.
To recall, case C-520/21 deals, now dealt with the issue of whether or not a mortgage contract concluded between a bank and its customer that is subsequently deemed void due to „unfair“ terms in the contract in accordance with the Unfair Contract Terms Directive (Council Directive 93/13/EEC) entitle the customer to the repayment of ALL payments made by the customer under the contract plus adequate interest payments on these amounts to make up for possibly lost income and the payment of additional redress for damages (e.g. the loss of buying power due to inflation). The customer, in turn, would be obliged to return to the bank the original loan amount (face value at origination). Additionally, the question was whether or not an institution may – subsequent to the voidance of the contract – offer an alternative loan arrangement to the client to settle the issue.
According to the press statement, the Court obviously rules in favor of the bank clients which has negative implications for the Polish banking sector and the Polish economy. On top, so KNF, the decision shakes up the legal system and the common understanding of public interest and social justice. In fact, the regulator believes that this ruling „contradicts the principles of proportionality and balance“ between the protection of values outlined in Directive 93/13 and the stability and security of the financial system.
According to the KNF, the Polish banking sector is currently well capitalized and liquid, which ensures its safety and stability. Banks have established appropriate buffers to enhance their resilience, particularly in anticipation of any such court ruling. However, this court’s decision will cause bank capital to evaporate, thus impacting banks‘ ability to finance housing needs and various economic projects, including energy transformation, defense initiatives, and participation in the reconstruction of Ukraine.
The KNF expects banks to adhere to the court ruling and incorporate the decision into their risk management processes and buffer models. Additionally, the regulator expects banks to offer some sort of settlements to clients with current foreign exchange (FX) housing loans. In this context, the KNF suggests the conversion of Swiss franc (CHF) loans into Polish złoty (PLN) loans on terms that treat the CHF loan as if it had been a PLN loan from the beginning. The KNF Office believes that the settlement is the most attractive and rational alternative for clients, avoiding a costly and lengthy legal process.