The Polish economy, which is struggling here, there, probably an increase in the price of loans in Franki or a reduction of those in zlotys, probably has only one guard, or KNF. It is the only institution that works. Unfortunately – the action always carries the risk of making a mess and one of the most recent ideas of the commission may lead to it.
You can not borrow!
The KNF issued a statement, in which it stated that when borrowing people tend to pay too much attention to the amount of the current installment, and not the potential installment at the interest rate increase. It is difficult to agree with a sharp analyst of the commission, while the eyes open in response to the proposed remedy. Well, banks would give their customers simulations of loan costs for many reference rates: 3, 5, 10 and 15%. The amount of information in such examples would be overwhelming, especially if, as the KNF wants, such a presentation would have educational value.
Inconsistencies are many
KNF reserves that no one knows at what level interest rates will be in a few or a dozen or so years. It is true. At the same time, however, there is some contradiction here, because one of the most important information from the commission’s communiqué is “we have to show people that they should look after their creditworthiness throughout the loan period”.
It’s basically just a good remark, but if I do not know how much I will earn and what the cost of loan service will be, I will never be able to estimate the cost of the loan. I will not mention here the next variable, which is the difference between the “interest rate” and the “reference rate”. The first one is reasonably predictable, but banks have shown not once and not two times that when it comes to Dismoar juggling, they are masters.
Such a project, presented by the PFSA, is therefore unsatisfactory, because the economy will not help, and contrary to the contrary: there will be another pointless limitation, because here we have each borrower look at four calculations (none of which will be the right one at the moment ), and innate optimism, which makes us believe that the reference rates will not increase, and so can not be cured in this way.
Loans in the economy
KNF can do a lot, but ideas must be hit. The economy is fueled by loans, because they create money. If it were not for loans and credits, not only would the standard of living go down, but many enterprises would collapse. Education in the field of economics is, and yes, necessary, understanding the rules of calculating the cost of credit too, but not when browsing the offers of banks, but a lot, much earlier, somewhere at the school level, long before anyone lends interest. Offers and credit agreements should be as simple as possible, because excessive complications will make us stop looking for the best offers and instead of competition will be simply economic inertia.
The economy supported on each side with loans is inherently unstable – there is no place for any market rights, because only one law applies: the law of maximum profit, that is, the one who bothers, has the most in catching. You can not educate Poles by credit agreements, nor are advertisements a place for education – to this end, the PFSA should purchase its own advertising band, the more so that education still does not give much: it is only a comparison of loans that, if it is unfavorable, can push someone for a break. In the end, even if the bank’s advertisement will be incomprehensible, what about the credit agreement – it’s better to go for a short time, because it will be even simpler than now.
This is the result of the KNF’s message to someone who would give him more than half a minute. So maybe it is not worth it?