Banking law through the eyes of a bank client, or what is worth knowing?

The services offered by banks are the basis for the functioning of both enterprises and individuals. Banks make it easy to regulate payments, effectively save earned capital, and also receive funds for certain purposes, thanks to loans and credits. Thus, the stability of the banking system is critical to the entire national economy, as well as to the wider international system. It is protected by the provisions of banking legislation.

Banking law - what is it?

Given the importance of the financial sector to the entire national economy and its international environment, there should be rules governing banking. Banking regulations in Poland are governed primarily by the Law on Banks of August 29, 1997, which, in addition to the obvious provisions regarding the functioning of financial institutions, their specific duties and rights, also describes the relationship of these institutions with other persons, including customers.

However, banking rules can be found in many other legal acts. From the client’s point of view, the Law of July 29, 2005 on trading in financial instruments or the Law of August 5, 2015 on handling complaints from financial market entities and on the Financial Ombudsman is important. The provisions on loans and credits or the Bank Guarantee Fund are also very important.

There are many rules. Below we list only some of them that have a direct impact on individual customers.

banking secrecy

The Bank, its employees and partners are obliged to keep secret all information received in connection with the implementation of banking activities, as well as in the course of negotiations, conclusion and implementation of agreements. Therefore, the bank must keep the information received secret, even if the contract was not ultimately concluded. This obligation extends for an indefinite period of time and can only be waived in strictly defined situations by providing information to very specific entities, such as a court, a prosecutor, a bailiff, the head of the Tax Office, the CNF or the OCCA (for example, in connection with the expectation of the behavior of the client) .

Information obligations of the bank

Banking legislation imposes numerous obligations on banks. They also include information commitments that are very important from a customer’s point of view. Therefore, banks must share data such as:

• Information on the current interest rates on funds in bank accounts, as well as on loans and borrowings;

• Commission rates and fees charged;

• interest capitalization dates;

• exchange rates used;

• Balance sheets and audit reports for the last audited period.

Knowing that such data about specific financial institutions is available, we, as clients, can choose much more consciously where and under what conditions it is best to invest our money or where to get new ones.

Be sure to also remember that, as a customer of the bank, you have the right to complete and reliable information about all the services offered by the bank, how they work, as well as fees and commissions charged. If you have any doubts about where you will find this kind of information, you can always ask a bank employee for help in obtaining it.

Complaint

If you believe that you have been harmed in any way as a result of your relationship with the bank, you can file a complaint. The complaint must be drawn up in writing, and its basis must be the Law of August 5, 2015 on the consideration of complaints from financial market entities and on the Financial Ombudsman.

Financial Ombudsman

The same legal act is the basis for another institution that can be useful to clients, namely the Financial Ombudsman. A financial ombudsman is a body that evens out unequal chances in a potential dispute between a client and a financial institution. So if the bank rejected your complaint, you can turn to the financial ombudsman for help in fighting for your rights. In the intervention statement, be sure to describe the whole situation, any objections you have to the financial institution, and the intended way to resolve the issue.

Bank Insurance Fund

Money accumulated on deposits and bank accounts is safe thanks to the Bank Guarantee Fund. The BFG is an institution that ensures the stability of the financial system in Poland by guaranteeing deposits in commercial and cooperative banks, credit unions and branches of foreign banks. It is thanks to this body that in the event of the bankruptcy of the aforementioned financial institutions, our money is protected up to 100,000 euros (and even 200,000 euros in special cases in relation to funds, for example, from the sale of an apartment, the receipt of an inheritance, the division of property or the payment of life insurance) .