Warsaw, 24 May 1993
REGULATION No 7/93
of the President of the National Bank of Poland
of 20 May 1993
on norms concerning coverage of bank assets with own funds.
Pursuant to Art. 100, para. 5, subpara.1 of the Banking Act of January 31, 1989, (published in Dziennik Ustaw no. 72, 1992, item 359, and no. 6, 1993, item 29 and no. 28, item 127) the following is ordained:
Section 1. Within the framework of their activity banks are obliged to:
a) assess the risk burdening individual liabilities in accordance with the risk weights established in the annex to the regulation, unless stipulated otherwise by a law,
b) maintain own funds at a level specified in the regulation, ensuring coverage of nonbalance assets and commitments burdened by credit risk.
Section 2. The measure of coverage of non-balance assets and commitments burdened by credit risk is the solvency ratio, calculated as the ratio of the corrected sum of own funds to the sum of non-balance assets and commitments counted by appropriate risk weights.
Section 3.1. The solvency ratio referred to in Section 2 cannot be lower than 8%, with the reservation of para. 2.
2. A bank which begins operational activity after the regulation comes into force is obliged to maintain the solvency ratio at a level not lower than 15% during the first 12 months of activity and not lower than 12% during the next 12 months of activity.
Section 4. If on the day the regulation comes into force the solvency ratio is lower than 8%, within 30 days from sending the first information referred to in Section 7 the bank shall present to the General Inspectorate of Banking Supervision information on the time of attaining the norm defined in Section 3 para.1 and the actions which shall be taken for this end.
Section 5. In the case of the solvency ratio being lower than the norms established in Section 3, the bank management immediately notifies the General Inspectorate of Banking Supervision of the reasons for such a state of affairs and takes the necessary actions to change this.
Section 6. The General Inspectorate of Banking Supervision shall undertake to supply to banks detailed explanations and instructions concerning calculation of the solvency ratio.
Section 7. Each month banks are obliged to send to the National Bank of Poland information on the formation of the solvency ratio, according to the form in the annex to this regulation, within 15 calendar days after the reporting month.
Section 8. The regulation enters into force after 14 days from the day of promulgation.