The Idea Bank of Leszek Czarnecki has further problems. The company has just announced that its recovery plan has been rejected by the Polish Financial Supervision Authority (KNF).
Idea Bank with problems
Idea Bank in its communication announced that the PFSA claims that currently the issuer’s capital ratios (i.e. Idea Bank) are below the minimum regulatory levels. In turn, the assumptions and methods presented by him in the recovery plan were not sufficiently substantiated.
However, this is not the end. The PFSA also presented the bank with new guidelines for the next recovery plan. This is to substantiate the success of activities relevant to increasing the capital base, ensuring rapid rebuilding of capital ratios.
The KNF even claims that the bank’s new recovery plan is to take into account the impact of the pandemic.
“In connection with the KNF’s decision, the issuer’s priority is to provide a new recovery plan as soon as possible, no longer than 3 months”
– Idea Bank announced in its communication.
Blow for blow
Idea Bank has had a bad run lately. A few days ago, UOKiK imposed on the entity over PLN 17 million in fine. Which is quite understandable, the bank itself already announced in a communication that it will appeal.
We would like to remind you that the office had reservations about the life insurance offered by Idea Bank. It was about unreliable risk reporting “Resulting from the investment of insurance capital funds in non-standardized closed investment funds, associated with the possibility of losing all or part of the paid-in funds, delays in redemption, as well as failure to make a profit”.
“The Management Board does not share the arguments of the President of UOKIK, and therefore intends to exercise the right of appeal to the Court of Competition and Consumer Protection”
– we read in the bank’s statement.
Leszek Czarnecki is also one of the main characters of the so-called “KNF scandals”. It all began with the publication of Gazeta Wyborcza, which on November 13, 2018 published a text that showed that the head of the Polish Financial Supervision Authority Marek Chrzanowski talked with the owner of Getin Noble Bank and Idea Bank Leszek Czarnecki.
Chrzanowski reportedly suggested that the KNF would be positive about restructuring plans for Czarnecki’s banks, but some “concessions” are a condition. A lawyer appointed by the head of the PFSA was to be employed. Apparently, a corrupt proposition came into play.