CHF loans burden Polish banks

FX mortgages gained in popularity during the 2006-08 real estate market boom. However, as a consequence of the abrupt depreciation of the zloty in 2H08, the Polish Financial Supervision Authority (KNF) regulated and limited the supply of FX mortgages. As of February 2021, CHF mortgages constituted 19% of the housing loan portfolio in Poland (approx. 3.5% of GDP). The issue of CHF loans remains open, as recent rulings did not fully dispel all doubts about that matter. The Supreme Court delayed its final decision and will turn to the central bank and KNF for their opinion.