Agnieszka Beata Kowalska, Director of the Non-Bank Lending Institutions Department at the UKNF, spoke at the panel titled ‘Role and importance of self-regulation for the financial sector from the perspective of supervisors and regulators’ during the ‘Ethical Foundations for Responsible Business’ conference. The event was organised by the Kozminski University and the Association of Financial Companies in Poland (ZPF).

At the beginning of her contribution, Agnieszka Beata Kowalska thanked for the invitation and the possibility of taking the floor. ‘I represent the supervisory authority, which is building the supervision of non-bank lending institutions from scratch. The market in question was placed under the KNF supervision on 1 January 2024, and I lead the Non-Bank Lending Institutions Department, which shapes this supervision based on dialogue and partnership with the market.’

The process of self-regulation in the non-bank lending market has just started. ‘I initiated it as I realised it was necessary to introduce order in certain areas and build trust between market participants and public institutions. The owner and author of the process is the market itself, under the leadership of the President of ZPF, Marcin Czugan. The UKNF made its premises available for the purpose of organising the kick-off and final meetings. It is encouraging that the interest was enormous; it showed the willingness to cooperate and the need to develop common standards. This is an important step towards the market’s maturity,’ Agnieszka Beata Kowalska emphasised.

For years, non-bank lending institutions have faced bad press, and they have been associated with usury. Self-regulation is an opportunity to change this image and show that the sector operates transparently and responsibly. Self-regulation supports, in a way, the market’s self-cleaning. It enables the industry to create a positive image and build trust among entities, consumers, and public institutions. An ethical non-bank lending market may develop in a sustainable and competitive manner. A key factor of successful self-regulation is that it should not be an initiative pursued by selected companies but by all of them.

By observing the self-regulation process, we will draw conclusions and we will exercise control. We analyse how the rules are implemented in practice, as indeed, self-regulation must go hand in hand with compliance with legal standards, supervision, and social responsibility.

Whether this self-regulation proves operational and viable will be verified by a currently drafted new act implementing the new EU Consumer Credit Directive (CCD2), which will redefine a number of rules on the functioning of the non-bank lending market. ‘I believe that it will be possible to find a solution that will allow us both to protect consumers and enable the development of this business – as a competitive and responsible one,’ Agnieszka Beata Kowalska said.

‘We have a common goal – the market must develop and the economy must develop, for you, for business, for consumers, and for us as representatives of public authority,’ Agnieszka Beata Kowalska emphasised.