By Anna Grybel-Kloc

The Polish Banking Commission, alarmed by the turmoil in international financial markets, especially in the US, has launched a check on domestic banks' approach in calculating their clients' credit worthiness when applying for a mortgage.

It has emerged that banks in Poland are inconsistent in the way they calculate clients' ability to afford loans, which means that people with the same income can borrow differing amounts depending on the lender. The level of monthly mortgage repayment to net income that banks allow varies widely, from 30% to 70%.

There is no sub-prime lending as Polish banks are conservative and don't lend to people who can't prove their income; but the discrepancies might be alarming, especially if we are talking about low income earners, who potentially could be hit the hardest by rising interest rates.

This is why the commission is currently working on a recommendation that will prevent such a situation and make the lending rules consistent across the whole Polish banking sector. Consistency will probably also mean stricter criteria.