In the domestic economy, the gap between financially excluded people and very rich entities that easily receive long-term loans is widening. The credit market is regulated intensively, especially in Poland. In the article you will learn the most important needs of the credit sector and understand better how it works.
Retail banks are naturally the most important lenders
in Poland. In comparison with their counterparts in other developed countries, banks in Poland do not grant very risky investment loans, or even short-term (cash) loans. There is a lot of regulation in the country. For confirmation, it is enough to reach for banking law or the guidelines of the Polish Financial Supervision Authority and the Best Bank.
Regulations bring many positive properties, but also threaten the further development of the credit market. Why? Thanks to regulations, Poland has largely avoided the economic crisis. There was no pressure to pay off derivatives in the country. Other banks in the world have invested in derivatives, which are extremely risky in the long run.
Regulations in Poland protect the market, but at the same time prevent people with real needs from paying short-term loans. In the national economy, most people earn less than two thousand USD a month. There are many households that are completely excluded from financial terms without access to a fair loan at a retail bank.
Of course, you don’t have to go to a retail bank only. In the industry you will also meet social loans or a developed Cream Bank sector based on private capital. Unfortunately, trust in Cream Banks is limited, and loans have many usury properties. The most important need of the credit market is simply to focus more on the individual situation of the borrower.
Very often, the register of the Credit Information Bureau and the Economic Information Bureau do not present the actual repayment properties. Considering individual customer features, smaller and personalized loans, a solid debt collection system and penalties for late repayment of even small loans are actually a must.
The credit market also needs to clear the Cream Bank regulations.
Usual loans as well as unreliable advertising mislead many customers. Dishonest Cream Banks focus on extremely high commissions, additional fees for examining the application, and also force a desperate client to agree to securing small cash loans with family property, mainly real estate. Usual practices on the credit market are unfortunately a way to reduce lending.
A good change in the credit industry is the development of so-called community loans from many individual investors. An important element of protecting the interests of borrowers is also a list of warnings published by the Polish Financial Supervision Authority. Each client of a financial institution is able to recognize the credibility of the lender.
When it comes to top-down tax cuts and help for the poorest households, it’s actually the foundation for reducing family tragedies associated with signing loan loans. Courts should also easily cancel similar contracts after detecting illegal entries. As you can see, the credit market has not only advantages, but also several disadvantages or problems to solve.