Polish government approves draft law on financial sector digital resilience and European green bonds

The Council of Ministers has approved a draft law aimed at strengthening the operational digital resilience of Poland’s financial sector and regulating the issuance of European green bonds. The legislation, proposed by the Minister of Finance, seeks to align Polish law with European Union regulations, including the Digital Operational Resilience Act (DORA).

The new regulations are intended to enhance the security of information and communication technologies (ICT) used by financial institutions. EU legislation sets uniform requirements for network and information system security across financial entities, covering institutions such as banks, payment service providers, investment firms, and central securities depositories.

The draft law grants the Polish Financial Supervision Authority (KNF) oversight responsibilities to ensure compliance with DORA. The KNF will have the authority to conduct audits and monitor the implementation of cybersecurity measures within financial organisations. The law also establishes a legal framework for cooperation and information exchange between the KNF and European supervisory bodies, including the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority.

In addition to digital resilience measures, the legislation addresses the supervision of issuers of European green bonds. Environmentally sustainable bonds are considered key instruments in financing the transition to a low-carbon economy, but differences in market standards have posed challenges for investors and issuers. Under the new law, the KNF will oversee compliance with EU green bond standards across a range of entities, including banks, investment funds, insurers, and companies from sectors such as energy and construction. The KNF’s supervisory powers will include the ability to suspend public offerings, subscriptions, or sales of green bonds in cases of non-compliance.

The law is scheduled to take effect the day after its publication.