Nowelizacja Rekomendacji S

The Polish Financial Supervision Authority (KNF) has published a press statement in which it informs of a new resolution (242/2023) on modifications to the KNF’s recommendation S as regards good practices with respect to mortgage-backed credit exposures.
Specifically, according to the KNF, recommendation S was modified to
– include new provisions for housing loans that are guaranteed by a government program;
– include new provisions for housing loans that are covered by the government’s „interest subsidy program“;
– include new provisions as to the buffer for an increase in interest rates that shall be applied towards variable interest rate loans or periodically fixed interest rate loans taking into account a customer’s creditworthiness, the duration of the loan, and several other aspects;
– include new expectations as to the assessment of risk for an early repayment of a loan (repayment risk); and
– include new expectations as to the information that shall be provided to customers in relation to mortgage loans, particularly those with variable interest rates. Such information includes a simulation of changes in property values upon the loan amount and subsequent monthly payments.
The revised recommendations will apply from July 1, 2024.