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Commerzbank could be forced to keep mBank's Swiss franc mortgages

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Commerzbank could be forced to keep mBank's Swiss franc mortgages

Poland's Financial Supervision Authority could require Commerzbank AG to keep the Swiss franc mortgage portfolio of mBank SA when it sells its stake in the Polish lender, Reuters reported, citing KNF Chair Jacek Jastrzębski.

Commerzbank previously said it plans to offload its majority stake in mBank and use the proceeds from the sale to speed up the implementation of its new restructuring plan. The German lender's 69.3% stake in mBank is worth roughly $2.56 billion, according to the news agency.

Jastrzębski told Reuters that it was natural for the regulator to expect that an entity planning to exit the Polish market will "properly secure both the financing of the portfolio of foreign currency loans and the legal position of borrowers."

Analysts expect KNF to require Commerzbank to sell mBank without a mortgage portfolio of about CHF3.7 billion in line with previous decisions on such transactions, Reuters noted.

Jastrzębski also said he expects Commerzbank to consult the regulator about the planned stake sale.

Meanwhile, Polish Prime Minister Mateusz Morawiecki said any decision by state-run banks to buy Commerzbank's stake in mBank should be taken on business grounds, Reuters added. Morawiecki, who made the statement in response to questions on whether any state lenders should be interested in the mBank stake, added that he was in favor of boosting Polish ownership in the lender.