Opinion of the European Central Bank of 20 February 2013 on the financial market supervision framework (CON/2013/14)
Date: 2013-02-20
Institutions: European Central Bank
Subjects: Poland, consumer credit, consumer protection, financial stability, financial supervision, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 20 February 2013 

on the financial market supervision framework 

(CON/2013/14) 

Introduction and legal basis 

On  14  January  2013,  the  European  Central  Bank  (ECB)  received  a  request  from  the  Polish  Parliament 

(Sejm) for an opinion on a draft law amending the Law on financial market supervision and certain other 

laws (hereinafter the ‘draft law’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union and the sixth indent of Article 2(1) of Council Decision 98/415/EC of 

29  June  1998  on  the  consultation  of  the  European  Central  Bank  by  national  authorities  regarding  draft 
legislative provisions1, as the draft law relates to the rules applicable to financial institutions insofar as 

they  materially  influence the  stability  of financial institutions  and  markets.  In  accordance  with the first 

sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council 

has adopted this opinion. 

1.  

Purpose of the draft law 

1.1  The  main  aim  of  the  draft  law  is  to  enhance  consumer  protection  in  the  financial  market 

supervision  framework  to  address  the  rising  importance  of,  and  risks  associated  with,  non-bank 

entities  granting  consumer  credit  that  are  not  subject  to  financial  supervision  by  the  Financial 

Supervision Authority (Komisja Nadzoru Finansowego, KNF). To this end, the draft law amends 
the  Law  of  21  July  2006  on  financial  market  supervision2  and  the  Law  of  12  May  2011  on 
consumer credit3 as follows: 

(a) 

the  definition  of  financial  market  supervision  objectives  is  extended,  focusing  on  the 

provision  of  reliable  information  on  the  functioning  of  the  financial  market,  to  enhance 

consumer protection in financial supervision; 

1 
2 
3 

OJ L 189, 3.7.1998, p. 42. 
Published in Dziennik Ustaw (Dz. U.) of 4 September 2006 No 157, item 1119. 
Dz. U. of 2011 No 126, item 715. 

 
 
 
 
                                                 
ECB-PUBLIC 

(b) 

the  KNF’s  task  of  informing  and  educating  the  public  is  further  defined  as  encompassing 

information on the functioning of the financial market and the relevant risks, and on entities 

operating  on  the  financial  market,  with  a  view  to  protecting  legitimate  interests  of  the 

financial market participants;  

(c) 

the  enhanced  KNF  informational  and  educational  tasks  will  be  carried  out  by  means  of 

broadcasting  warnings  and  announcements  on  the  public  radio  and  television  or,  if 

necessary, other mass media; 

(d) 

entities granting consumer credit will be obliged to inform the consumer whether or not they 

are subject to KNF’s financial supervision; 

(e) 

creditworthiness  assessment-related  provisions  and  respective  definitions  included  in  the 

Law  on  consumer  credit  are  amended  to  ensure  that  the  criteria  for  creditworthiness 

assessment applied by banks and non-bank lenders are aligned, and that such assessment is 

based on reliable information. 

1.2  Additionally, the  Law  of  29  August  1997  on  banking4  is  amended to enable access by  non-bank 

entities  granting  consumer  credit  to  creditworthiness-related  information  held  in  the  relevant 

databases created by banks, subject to the consent of the data subject. 

2.   Consumer protection 

2.1  The draft law emphasises educating, informing and warning consumers of financial services about 

the  risks  associated  with  the  operation  of  the  financial  market  and  its  participants.  The  ECB 

understands  that  these  measures  are  designed  to  address,  in  particular,  the  risks  associated  with 

loans granted by non-bank entities that are not subject to KNF’s supervision. The ECB welcomes 

the measures introduced by the draft law as they aim to strengthen consumer protection and thereby 

contribute  to  safeguarding  the  stability  of  the  financial  system  and  preserving  confidence  in  the 

marketplace.  In  this  context,  and  from  a  broader  perspective,  the  ECB  also  draws  the  Polish 

legislator’s  attention  to  the  recent  discussion  on  the  need  to  properly  monitor  and  supervise  the 
shadow banking sector in Europe5. 

2.2  Furthermore, the ECB would like to draw the consulting authority’s attention to the need to bring 

national legislation into line also with anticipated Union legislation of relevance from an investor 

and  consumer  protection  perspective,  once  such  legislation  is  adopted.  This  includes:  (i) the 

proposal  for  a  directive  of  the  European  Parliament  and  of  the  Council  on  markets  in  financial 
instruments  repealing  Directive  2004/39/EC  of  the  European  Parliament  and  of  the  Council6, 

4 
5 

6  

Consolidated text published in Dz. U. of 2012, item 1376 (hereinafter the ‘Law on banking’). 
See,  for  instance,  the  European  Commission’s  Green  Paper  on  shadow  banking  (COM(2012)  102  final)  and  the 
Eurosystem’s reply to the European Commission’s Green Paper on shadow banking. Available on the ECB’s website at 
www.ecb.europa.eu. 
COM(2011) 656 final. 

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(ii) the proposal for a regulation of the European Parliament and of the Council on key information 
documents  for  investment  products7,  and  (iii)  the  proposal  for  a  directive  of  the  European 
Parliament and of the Council on credit agreements relating to residential property8. 

3.   Access and reporting to relevant databases 

Under the draft law, non-bank entities granting consumer credit are granted access to information stored 

in  databases  created  by  banks  and  covered  by  banking  secrecy.  In  this  respect,  the  ECB  makes  the 

following observations. 

First, it is noted that if both banks, and non-bank entities granting consumer credit, alike were required to 

report their lending data as regards consumers to databases such as those referred to above, this would 

ensure  symmetry  in  terms  of  the  reporting  of  and  access  to  information  on  such  databases,  and  would 

assist  banks  to  better  assess  the  creditworthiness  of  their  customers,  as  well  as  to  monitor  and  manage 

credit risk efficiently, thereby strengthening the stability of the financial system.  

Second, the ECB notes that the following additional safeguards apply to the provision by means of the 

databases  of  information  to  non-bank  entities  granting  consumer  credit:  (i) information  is  provided 

subject to the consent of the data subject; and (ii) information is provided only to the extent necessary for 

the  purposes  of  assessing  the  creditworthiness  of  the  consumer.  While  it  is  acknowledged  that  such 
safeguards  will  help  to  protect  information  covered  by  banking  secrecy9,  it  should  be  ensured  that 

adequate  confidentiality  requirements  apply  to  non-bank  entities  granting  consumer  credit  where 

information  covered  by  banking  secrecy  is  received  and  used  by  them  under  the  proposed 

Article 105(4)(4) of the Law on banking. 

This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 20 February 2013. 

[signed] 

The President of the ECB 

Mario DRAGHI 

7  
8 
9 

COM(2012) 352 final. 
COM(2011) 142 final. 
On the draft law’s approach to the protection of banking secrecy, see also the explanatory memorandum to the draft law, 
p. 16. 

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