FOREIGN CURRENCY LOANS AND STABILITY OF THE BANKING SYSTEM IN POLAND

The aim of the study was to answer the question whether and to what extent foreign currency loans may pose a threat to the stability of the banking system in Poland. The reason for exploring this problem is the situation in which Swiss franc mortgage loan parties found themselves. The problem concerned not only Poland, but also appeared in Hungary, Spain and Ukraine. The aforementioned countries have adopted various strategies in order to solve this issue. Currently, there is a discussion in Poland over the form of solution to the situation in which the Swiss franc debtors have found themselves. This article presents the following hypotheses: (1) The credit policy of banks, which includes mortgage lending in Swiss francs, was a typical action in terms of risk management which in this case was two-way in nature. In addition, banks did not have the opportunity to significantly impose its policies on customers, as evidenced by the degree of market development and market competition. (2) Conversion of mortgage loans according to the CHF historic exchange rate can affect the stability of the banking system. The article presents the main types and sources of bank risks with particular emphasis on credit risk and foreign exchange risk. In addition, the paper shows the importance of this kind of risk in the context of the systemic stability of the banking sector in a situation of exchange rate stability disturbances. Verification of the research hypothesis was based on literature studies and analysis of statistical data.


Introduction
Allocation of resources is the main task of banks in any market economy. It is often effectively implemented, banks also have make payments and enable the same to other information and provide other market participants with it, take the risk over from other and offer them to market participants. Risk is a common phenomenon in bank activities. It is of a complex and multi-dimensional nature. Majority of risk factors derive from information asymmetry. This phenomenon consists in the fact that the scope of information The banks which are involved in transactions establish with other market participants relationships at the macro-, mezzo-and microeconomic levels. At the macroeconomic level it is expected from banks to display behaviours of positive impact on economic with clients form for a bank a plane to meet microeconomic objectives. At this level the pants. However, bank clients, in particular depositaries but also borrowers, are very funds which would satisfy demand for loans. It can be said that the proper assessment the subject of a transaction within the framework of bank activities at the microeconomic parties found themselves. The problem concerns not only Poland, but it also appeared form of solution to the situation in which the Swiss franc debtors have found themselves.
-tomers, as evidenced by the degree of market development and market competition.
fect the stability of the banking system. The article presents the main types and sources of bank risks with particular empha-based on literature studies and analysis of statistical data.
collection of 1997, p. 39). Alternatively, it can be said that the banking system is an organised set of elements being banks and relationships among them functional approach. This approach is represented by a view that development of the -The banking system activity focuses on allocation of resources gained from their depositaries into different kinds of investment in order to multiply them or keep their value 2006, p. 56). In accordance with this approach ing institutions inter-connected by money markets. In this approach the place and role -ment funds, is the fact that banks are the only institutions which create money and explains their special role in the monetary impulse transmission to economy. The authors of the bank risk definitions presented in source literature have not uncertainty. One of the approaches assumes that risk appears when it is possible to p. 13). A complex nature of the bank risk and the fact that many of its components For the purposes of this paper it was assumed that in their activities banks deal with risk whose multi-factor nature makes it impossible to measure it in its entirety. The factors of bank risk have a double nature. Firstly, they are technical and operational conduct their business activities in several or more countries at the same time. Conse-and ensure the expected yield in relation to the size of risk.
in two areas: -market one. If we assume that it refers only to the money due to a bank, it can mean many banks it can be impossible to carry out, especially in the situation of the freedom or in order to avoid costs passed on by banks to customers. The second variant is very ally they assume a transnational character.

by CHF loans
-tions in the currency markets were responsible for that. The forecasts based on economic currencies. The demand from households for loans denominated in the Polish zloty and Analysis of the data outlined in tables 1 and 2 shows that households reacted to in domestic currency and conviction about a temporary depreciation of the zloty. An additional factor was the interest rate which was twice lower in the case of loans dein table 3. On the basis of the data it can be concluded that the situation of borrowers

Conclusions
believe that banks used their monopolistic position as they do not enjoy one. Thus, they market economy. . Warszawa, Instytut Finansów.