Although the Polish Financial Supervision Authority made a nod to clients of financial institutions and eased lending policy, it is up to the banks how they will use the new T Recommendation and whether Poles will be able to count on easier and cheaper credit.
All through the DTI, i.e. determining the maximum portion of income allocated to repayment of credit debt, which will now be individually determined by banks.
Higher creditworthiness and return of loans on statement
These are the most significant changes proposed by the Polish Financial Supervision Authority. After many months of restrictive lending policy, the supervisor gave banks tools that can increase credit availability and increase lending.
From the point of view of a person who wants to take out a loan, the most important thing is to abolish rigid DTI (debt to income) limits at 50 percent and 65 percent for people earning above the national average.
This means that currently loan installments cannot be higher than half or 65 percent of net income. After the entry into force of the T Recommendation in the proposed shape, these limits will be set at each bank individually. Each institution will be able to set the DTI level according to its own criteria.
What does this mean for customers?
Certainly increased competition between banks and, consequently, the possibility of obtaining a higher loan. How big can the scale of changes be? Theoretically, people with low incomes can count on the biggest increases, while those who earn above the average can count on slightly smaller changes. hich will now be individually determined by banks.
Of course, the scale of changes depends to the greatest extent on banks and on what level the DTI will be determined in each institution. The tables below show examples of creditworthiness levels after raising DTI to 60 and 75 percent.