Polish regulator proposes NBP reference rate for mortgages

The Polish Financial Supervision Authority (KNF) has proposed legislative changes that would allow mortgage interest rates to be based on the National Bank of Poland (NBP) reference rate in addition to existing reference indices. Under this proposal, borrowers could choose between a formula consisting of the central bank's rate plus a bank margin, or traditional indices like WIBOR or POLSTR.

The KNF argues that this change would increase price transparency, shift competition between banks to the margin level, and strengthen the transmission of monetary policy to households. The authority noted that such a structure could serve as an “emergency plan” and is already used in several European countries, including Germany, France, and the United Kingdom.

The Ministry of Finance has requested an opinion from the NBP regarding the proposal and has also consulted with the European Central Bank. While the change offers more consumer choice, market experts suggest that mortgage costs may not automatically decrease, as differences in rates might be compensated for by adjustments in bank margins.