Access to Bank Database

1
Access to Bank Database

• Supervision and Commercial requirements,
  Relationships with Enviroment
• Katarzyna Komendera
• 16th International Conference on Higher Education
  
• Cracow, 19th 21st July 2002

2
Access to Bank Database

• Bank is a public trustee institution
• in respect of the way of rendering services and
  quality of database

3
There are two legal aspects of the access to bank
database

• Access to the confidential information -
  regulations concerning the public companies
• Bank secrecy - rules included in Polish banking
  law

4
The rules are interpreted very strictly by Polish
authorities

• All investors should have equal access to the
  price sensitive information. The information,
  that was not announced for general public should
  not be disclosed
• Bank is obliged to keep the secrecy towards third
  persons. The secrecy includes all information on
  individual customer concerning banking business
  operations. the
  third persons are not in particular Mother
  company, rating agencies, auditors, courts, SEC,
  police

5
Main areas of information - scope

• Internal / external consolidated financial
  reports of the capital group
• Balance sheet and income statement for
  consolidation purposes
• for management purposes / for public issue
• External consolidated financial reports of the
  capital group for banking supervisory authorities
• Balance statistics, risk assets, trade book risk
  positions (market counterparty risk), currency
  position, large exposure etc.,
• for Bundesbank, Austrian National Bank
• Daily, monthly, quarterly, semi-annual, annual
  reports

6
Main areas of information - issues

• Public companies are obliged to publish all
  disclosures under IAS
• New Polish Accounting Law follows IAS (true and
  fair picture)
• There is much more information in public reports
  in Poland on risks exposures market risk,
  counterparty risk, country risk
• Starting in 2003 public companies will have to
  publish segment reports
• to show how the company is managed and where
  the profit is generated

7
Main areas of information limits

• It is not allowed to transmit data on individual
  customer outside the bank
• except for the purposes of the financial
  statement

8
Steps taken in order to eliminate the bank
secrecy regulations limits concerning the
reporting of the Banks individual exposures

• There is taken the action to obtain the
  customers approvals for the data transfer to
  foreign banking supervisory authorities
• Reporting scope is limited to these customers,
  who have given such approvals.

9
Relationships with the Enviroment - limits

• There is no access to bank database for third
  persons (central operational systems, customers
  acounts, consolidated figures not published in
  the financial statements)
• Special contracts are signed between banks and
  universities to let students make researches

10
Relationships with the Enviroment conclusion

• The scope of information in public reports is
  beeing wider and wider
• Reports prepared by banks are published all over
  the world
• Standards are beeing more comparable
• The strength of banking industry is beeing
  increased by new disclosure requirements
• Basel II Accord