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Legal risk management in the Polish banking sector

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  • Agnieszka Modras

Abstract

This paper reviews how Polish banks manage legal risk; that is, what is required from banks to satisfy applicable regulations and management theories and how this process works in practice. Since the global financial crisis of 2007–9, legal risk has become increasingly important for the banking sector. In Poland, the growth in importance is predominantly associated with the so-called regulatory tsunami, which has seen a constantly changing legal framework for bank operations, as well as with a significant number of customer claims that challenge the validity of foreign-currency- based mortgage loans. Legal risk management has not been extensively covered by academic research, and thus this study makes a valuable contribution to the field, shedding new light on this topic and providing insights that can inform future research and policy decisions.

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Handle: RePEc:rsk:journ3:7958088
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