Benchmark reform was recently introduced, which involved the replacement of WIBOR rates with the new WIRON index. Therefore, some banks send annexes to agreements to their clients (borrowers).
In order to change the indicator in an existing contract, it is necessary to submit an annex. The banking sector suggests refraining from such a change until the general conditions for the transition of indicators are determined by means of an appropriate regulation.
Such a position was presented by Tadeusz Białek, vice-president of the Polish Bank Association, in an interview with the PAP Biznes agency.
Banks send annexes to contracts
“Due to the fact that WIRON can already be used as a reference indicator in contracts, it is possible to replace WIBOR with WIRON at the client’s request by signing an annex. Some banks respond positively to such customer calls. There are also banks that have started sending proposals to sign annexes.” Bialek said.
According to Tadeusz Białek, vice-president of the Polish Bank Association, the banking sector does not expect a massive move from banks as a result of the benchmark reform.
The introduction of regulation at the ordinance level is aimed at ensuring an efficient and one-off operation after prior identification of the so-called regulatory event. Therefore, the banks suggest refraining from introducing changes until clear guidelines on this issue are obtained.
– Of course, the replacement of the indicator by law in the case of WIRON will not apply to all contracts or instruments, because in some of them there are other fallback clauses, some contain a different indicator, and some are before the BMR regulation – he said during an interview with PAP Business.
He adds that another important issue is the corrective spread, which is to objectify the transition and ensure a smooth transition to the new indicator.
– Therefore, as the banking sector, we rather suggest waiting for the terms of the transition to be defined in the regulation and the regulatory event. I do not want to interfere in the individual decisions of either customers or banks, but basically the operation should be carried out by regulation” – Tadeusz Białek summed up the changes taking place.
