Polish banks face stabilization in coming quarters - regulator
July 4, 2014
Poland's banking sector enjoys a "good and stable" situation and faces stabilization or gradual improvement of results in the coming quarters with risks to the positive scenario of mainly external nature, financial market regulator KNF wrote in a Q1 sector report.
"It seems that the economic growth acceleration observed in the recent periods, combined with the banks' adjustments to the environment of low interest rates and regulatory changes, should support stabilization or gradual improvement of bank results in the coming periods," the KNF wrote.
Lending growth should continue in the coming quarters, with risks to this scenario coming mainly from abroad.
"(...) external factors (durability and strength of recovery in the euro zone, slowdown of growth in main developing economies, Ukraine) may have a negative impact on Polish economy and companies' propensity to step up operations and investments," the regulator said.
The main challenge for deposit base growth, in turn, are low interest rates, but savings growth should be supported by a clear economic sentiment improvement and a related wage growth, the report reads.
In terms of liquidity, banks are recommended to further enhance the stability of sources of financing and "realizing a strategy which will be well fitted to Poland's external conditions," the report showed.