The Polish Financial Supervision Authority (KNF) was formed in October, 2006 from a merger of the Polish Securities and Exchange Commission (KPWiG) and the Insurance and Pension Fund Supervisory Commission (KNUiFE). In January 2008 KNF merged with the General Inspectorate of Banking Supervision (GINB), concluding a multi-phase process of integrating supervisory authorities. This integration scheme was the effect of changes on the financial market – the growing position of international financial groups and cross-penetration of financial products. It allowed us a full insight into the market and a prompt and effective response to problems – especially the safe diversification of deposits in the capital group sector. For the first time we were able to carry out joint supervisory activities in units in different sectors (e.g. combined checks in banks, insurance companies and brokerages). In developing our supervision tools we decided to build a new supervision systems based on risk calculation, which would allow the adjustment of supervisory activities to the risk factor carried by financial market players.
In most EU countries financial supervision is an integrated process and in most cases the integration took place outside the central bank. This is helpful as this way supervisory policy and financial policy are kept apart, averting temptations to apply supervisory tools for financial policy purposes. When in 2002 the European Parliament ruled that EU members should integrate their supervisory procedures, it also said that the independence of national supervisory authorities from national central banks and the European Central Bank (ECB) should be maintained. This was also connected with the prominent role of central banks, which are responsible for financial stability and financial crisis managament.
As regards changes in international supervision, the best idea in view of the above-national character of financial institutions appears to be their comprehensive monitoring and supervision. However, this system should be based on effective supervision on the local level. It would be dangerous to limit the influence of local supervision on capital outflow from the markets it controls. Recent events have shown that under crisis EU governments concentrate on their local markets and national financial institutions are salvaged with money from domestic taxpayer pockets. Therefore, joint action would call for a joint budget, perhaps in the form of a European guarantee fund.