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Polish Parliament Passes Amendment To Banking Law For Possibility Of Dividing Banks In To Separate Entities

The Polish Parliament have passed amendments to the Banking Law to introduce the possibility to divide banks into separate entities. This may be seen as a direct consequence of the agreement between the Ministry of the State Treasury and UniCredit.

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The Polish Parliament have passed amendments to the Banking Law to introduce the possibility to divide banks into separate entities. This may be seen as a direct consequence of the agreement between the Ministry of the State Treasury and UniCredit. The law has been approved by the President and the ratification process has begun completed.

The agreement assumed that prior to the BPH-Pekao merger, Bank BPH could be divided into separate entities and 200 of BPH’s branches could be sold to an independent party.

Earlier this year, the Government had committed itself to introduce the appropriate changes to the law to enable the execution of the agreed scenario till October 19th, 2006.

Amendments to the Banking Law open up a possibility to divide Bank BPH into two parts through possibly selling of one part and a possible merging of the remaining part (including Custody business of BPH) into Bank Pekao.

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