Polish Central Bank Calls Franc Loans Biggest Stability Threat
- Legal risks from litigation could undermine some banks
- Financial stability report urges out-of-court settlements
New and old apartment blocks in Warsaw.
Photographer: Lukasz Sokol/BloombergThis article is for subscribers only.
Polish central bank has singled out the legal status of $31 billion in Swiss franc mortgages as the main threat for the stability of the country’s financial system.
The decade-long court battle over loans has forced banks to increase provisions for legal risks and could spell losses that some of them may not be able to handle, the National Bank of Poland said in its financial stability report on Wednesday.