Poland’s banking sector is stable and resilient, according to the latest financial stability report compiled by Poland’s Central Bank (NBP). However some actions should be undertaken to protect the sector from external factors such as Polish economy.
“The persistence of substantial uncertainty in Poland’s external environment, increasing the probability of negative shocks, indicates that it is necessary to strengthen the resilience of the banking sector and avoid regulatory actions that could undermine it,” report said.
The report also published the results of the stress tests conducted by the NBP carried to assess the resilience of domestic commercial banks to negative shocks that take into account macroeconomic, market and liquidity shocks. It showed that in the reference scenario, with growth exceeding 3 percent threshold, banks representing some 8.3 percent of banking sector assets would require PLN 8.51 billion in capital to meet capital requirements and combined capital buffer. In the shock scenario, where the economy drops to a standstill, banks representing 31.1 percent of sector assets would need PLN 22.8 billion.