Polish regulator probes bank over FX lending

WARSAW, Nov 6 (Reuters) - The Polish financial watchdog has launched a investigation into a local bank which ignored a recommendation to stop lending in foreign currencies, the regulator said on Thursday.

The watchdog did not name the bank in a statement on Thursday and its spokesman was unavailable for comment.

The regulator also called on Polish banks that are having problems funding loans in Swiss francs to stop offering them.

Many lenders in the region have tightened rules for loans in foreign currencies in recent weeks following the global financial crisis.

That led some banks to delay paying out Swiss franc mortgage loans to customers who have already signed their loan contracts, according to local media reports.

The central bank moved to ease the shortage of hard currency on money markets by offering foreign exchange swaps in dollars and euros to local banks.

It is also nearing an agreement with the Swiss National Bank (SNB) to secure a loan in Swiss francs.

The regulator said the banks should not use the funds obtained from the central bank through swap arrangements to finance new loans, but only to to pay off current liablities.

(Reporting by Piotr Skolimowski; Editing by David Cowell)