The Effectiveness of Limiting the Payment of the Dividend as an Instrument of Banking Supervisory Policy in Poland

Abstract

This article makes a critical analysis of Polish restrictions on the payment of dividends against the Community solutions, including the effectiveness of the Polish Financial Supervision Authority recommendations addressed to Polish banks in terms of the expected dividend policy. According to the author, there are significant discrepancies between the Polish and the EU regulations in this field. They are systemic in nature since the Community rules based on a clear algorithm and the Polish ones are more discretionary. The author emphasizes, however, that despite the identified discrepancies, the Polish Financial Supervision Authority recommendation addressed to the Polish banks in terms of the expected dividend policy for the years 2011–2014 was effective and allowed the banks to strengthen their capital base, thereby improving their ability to absorb potential losses.