For several years now, financial markets have been taking steps to regulate interest rate benchmarks (such as WIBID, WIBOR, EURIBOR and LIBOR). In the European Union, those measures are taken in line with Regulation (EU) 2016/1011 of the European Parliament and of the Council (“Benchmark Regulation”, “BMR”). The purpose is to increase reliability and security, and to improve benchmark provision methods.
As a result of the steps taken, the calculation methods of selected benchmarks (such as WIBID, WIBOR and EURIBOR) have been changed to meet the BMR requirements. Some benchmarks are being gradually discontinued and replaced by others (for example, LIBOR has been replaced by SOFR). That is why banks have developed plans in case of cessation of benchmarks or material change of their calculation methods. As part of those plans, fallback clauses have been included in agreements with customers.
WIBID and WIBOR are the key interest rate benchmarks in the Polish financial market. They are provided in line with the method developed by GPW Benchmark S.A. On 16 December 2020, the Polish Financial Supervision Authority (KNF) authorised that company to act as the benchmark administrator.
The bank continuously monitors regulatory and legislative measures taken by domestic, foreign and international authorities with respect to benchmarks. It also takes steps to ensure compliance with the BMR requirements.
In July 2022, the National Working Group for benchmark reform (NWG) started its operations. It was established in connection with the planned introduction of an alternative interest rate benchmark in Poland to be calculated on the basis of overnight deposit transactions. The NWG also published the reform roadmap and recommendations concerning the application of WIRON in new sales of products offered by financial institutions.