On 20 February 2019, the Council of the Bank Guarantee Fund (BGF) approved resolutions on the total amount of premiums for the Bank guarantee fund and the total amount of premiums for the enforced restructuring fund in 2019. The total amount of both types of premiums for the Banking sector was set at PLN 2,791 million. In 2018, the total value of both premiums was PLN 2,200 million which means a growth of the premiums in 2019 by as much as 27% versus 2018. Additionally, there was a major modification to the split of premiums to both funds – in 2019 the premium for the enforced restructuring fund (PLN 2,000 million) accounted for 72% of total premium while a year earlier (PLN 960 million) it was 44%.
The decision of the BGF Council resulted in a material growth of operating expenses of the Banking sector in 2019, independent of Banks. For our Bank, the costs of BGF premium amounted to PLN 202.3 million in 2019 versus PLN 165.2 million in 2018 (+22% y/y). This means that the growth of BGF costs accounts for 22% of increase of operating expenses versus to 28% estimated in the sector.
In a communication from 27 February 27 2020, BGF indicated that the total amount of bank contributions in 2020 will amount to PLN 3,175 million. This means an increase by 14% compared to the previous year. BGF indicated that the increase in the sum of premiums in 2020 results primarily from 1) the dynamics of guaranteed funds, which at the end of 2019 amounted to 9.1%, thus being above the long-term average, 2) activities carried out in the field of resolution.
In compliance with the Act on BGF, the target level of resources in the guarantee fund by 3 July 2030 is to be 2.6% of guaranteed deposits. While the target level of resources in the enforced restructuring fund is 1.2% to be reached by 31 December 2030. In accordance with BGF data for 2019, the resources in the guarantee fund amounted to 1.79% and in the enforced restructuring fund was 0.65%. The amount of guaranteed funds in Banks as at the end of 2019 was about PLN 860 billion.