Marcin Mikołajczyk, Deputy Chair of the KNF, spoke at a jubilee gala marking the tenth anniversary of the Protection Scheme of the BPS Association.

Marcin Mikołajczyk emphasised the importance of the functioning of the Protection Scheme of the BPS Association for the cooperative banking sector and the challenges the Scheme is to face in the future. He said that the Institutional Protection Scheme (IPS) had been established in response to the need to enhance the mechanisms of auditing, monitoring, and ensuring mutual guarantees for liabilities among the participants in the Scheme. He has also stated that the UKNF recognises the paramount importance of the Scheme in the restructuring and recovery processes of cooperative banks. The IPS supports banks in the implementation of recovery plans, activates merger processes, and acts as a stabilising force. He has reminded, though, that the responsibility for liabilities rests with all the participants in the Scheme, and this requires appropriate resources and a strong economic position of the associating bank. He has added that Bank Polskiej Spółdzielczości SA, being the key participant in the scheme, plays a crucial role in delivering technological, infrastructural and business solutions to support development and optimise costs at cooperative banks.

Marcin Mikołajczyk has indicated that the Scheme constantly improves risk management methodologies and mechanisms, adapting them to the rapid legal and technological changes. The activity of the Scheme both at Polish and European fora helps to align the regulatory environment with the specific nature of the sector. He has also pointed to the growing role of protection schemes in the light of exacerbating threats, mostly cyber threats and legal risks related to customer protection. He has firmly stated that a single cooperative bank cannot face those challenges alone, and this is why the association structures are to become even more important. The UKNF declares it will continue to work with IPS units in the area of policy development, highlighting that the principle of proportionality can be applied where it is reasonable and where it does not compromise security of the sector. Marcin Mikołajczyk concluded his speech by stating that, despite the current good situation of banks participating in the Scheme, there is always room for improvement, and the key to the future stability will be the active attitude of both the Scheme and the participants in it.