A revolution in currency payments. The transfer will arrive in 10 seconds

On Tuesday, the government adopted changes to the regulations regarding, among others: compulsory restructuring of banks – according to a statement from the Prime Minister's office. The adopted amendment also included provisions regarding immediate transfers.

This is a draft act amending certain acts related to the functioning of the financial market and the protection of market participants.

“The adopted changes concern the broadly understood supervision of the financial market and its security. The project adapts Polish law to EU regulations regarding, for example, the payment services market and resolution. The new solutions will ensure, among other things, that quick transfers in euro will not be more expensive than regular transfers, which will facilitate everyday payments,” said the release from the Chancellery of the Prime Minister.

As the Ministry of Finance announced in its announcement on Tuesday, the draft amendment adopted by the government “ensures the application of the EU regulation on instant payments in euro (Instant Payments Regulation, IPR). The EU regulation applies to a lesser extent to countries outside the euro zone, but it imposes an obligation on payment service providers, also from Poland, to offer their customers an instant transfer service in euro (within 10 seconds), with no additional fees.”

The Ministry indicated that the changes provided for in the project also apply to the MREL requirement, i.e. the minimum level of own funds and eligible liabilities, the aim of which is to ensure the ability to cover losses and recapitalization. This requirement is determined by the Bank Guarantee Fund for domestic entities such as banks or investment companies.

“The solutions that will be of the greatest importance on the Polish market will be those that allow for waiving the determination of MREL for entities that, in the event of bankruptcy, will be subject to the bankruptcy procedure rather than forced restructuring. This will reduce operating costs and reduce administrative burdens,” the Ministry of Finance said in a statement.

The solutions adopted in the draft act are also intended to ensure greater resilience of benchmarks, which is expected to contribute to more effective supervision and eliminate existing doubts in interpretation regarding the application of the BMR (Benchmark Regulation).

The proposed provisions are to enter into force 14 days from the date of announcement of the Act, with the exception of some provisions that will enter into force on a different date. (PAP)

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