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Report: 2 Polish banks see no need for capital hike after FX loan proposals


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Report: 2 Polish banks see no need for capital hike after FX loan proposals

Bank Millennium SA and mBank SA are not considering capital hikes after recent recommendations by Poland's Financial Stability Committee with regard to lenders holding significant foreign-currency-denominated mortgage portfolios, Reuters reported Jan. 24.

"Our assessment is that the bank will not need external capital," Millennium Bank CFO Fernando Bicho said in an emailed response to Reuters. A spokesman for mBank reportedly also noted that the lender does not need to raise additional capital.

The Financial Stability Committee issued a set of recommendations for Polish authorities and regulators earlier in January, advising, among other things, to increase risk weightings on banks' foreign-currency mortgage exposures to 150% from 100% and impose a 3% systemic risk buffer on all lending exposures.

Both mBank and Bank Millennium are among lenders with significant FX mortgage exposures, and the committee's recommendations may have an impact on them, Reuters noted. Other Polish banks with large FX mortgage portfolios include PKO Bank Polski SA, Getin Noble Bank SA and Banco Santander SA unit Bank Zachodni WBK SA.

Bank Millennium is a unit of Millennium BCP, while mBank is controlled by Commerzbank AG.