Financial system is stable and resilient, and systemic risk is low
Poland’s financial system remains balanced and systemic risk continues to be low.
Financial Stability Report, June 2019
The rate of lending growth and debt level to GDP remain moderate. The capital position of the banking sector is good – the total capital ratio is above 18% and is accompanied by low leverage. At the same time, the quality of the loan portfolio also remains good – the share of impaired loans consistently remains below 7%. The vast majority of banks more than meet the short-term and long-term liquidity standards.
Certain processes and phenomena occurring in the Polish financial system may pose a challenge to financial stability, and they include in particular:
- the pace of adjustment of the WIBOR and WIBID reference rates to the regulation effective in all EU member states;
- the low profitability of a portion (mainly medium-sized and smaller) banks;
- the growing share of high-value consumer loans with long maturities;
- housing loans originated in the conditions of low interest rates and increased price growth on the real estate market;
- the low efficiency and insufficient integration of cooperative banks;
- the greater role of the government sector as an owner of a large portion of the financial sector (including primarily the banking sector), and at the same time its supervisor and debtor (through the government bond portfolio).
In the opinion of Narodowy Bank Polski, the implementation of the following recommendations will support the maintenance of the stability of the Polish financial system: