Stanowisko UKNF dot. zagadnień prawnych i ekonomicznych zw. ze wskaźnikiem referencyjnym WIBOR

On July 26, 2023, the Polish Financial Supervision Authority (KNF) issued a press statement in which it informs of the publication of a Position on legal and economic issues related to with the WIBOR reference index. The position follows recent statements undermining the legitimacy, adequacy, and credibility of the WIBOR, the Warsaw Interbank Offered Rate, particularly in relation to its use in financial contracts. The document thereby aims to address bank and consumer concerns about the use of WIBOR in mortgage lending and to prevent or refute conflicting statements regarding the reference interest rate.
In the position document, which primarily addresses legal and economic matters related to mortgage loans denominated in PLN (Polish zloty) whose interest rate is linked to the WIBOR, the KNF discusses
– the significance of mortgage loans and clarifies the definition of mortgage loans according to Polish banking law. The KNF thereby specifically addresses the obligations of banks and borrowers regarding interest rates and their changes under Article 69 of the banking law.
– the evolution of mortgage loan regulation in the context of the legislation from 2011 and 2017, highlighting the implementation of EU directives and various mortgage loan-related requirements of lenders and intermediaries.
– the utilization of benchmarks internationally and the volatile nature of benchmarks.
– the EU Benchmarks Regulation (BMR), highlighting the requirements of benchmark administrators and the methodology for benchmark creation.
– the role of ESMA and the processes for assessing benchmark administrators and the suitability of a benchmark itself. In this context, the document also illustrates the implications of a benchmark being classified as a „critical benchmark“ under the EU BMR and the particular supervisory focus and actions in relation to such classification.
Finally, the document contains a detailed analysis of the WIBOR’s volatility and factors that affect this volatility with a particular focus on the influence of Poland’s monetary policy on this volatility.