NBP: financial system stable. Some risks remain

The Polish financial system is stable, and while risks have not significantly changed they still remain, central bank NBP said in its semi-annual review of the sector.

The system is boosted by strong domestic macroeconomic conditions. Corporate and debt remain moderate while growing household consumption and rising investment activity of the public sector contributed to GDP growth acceleration in H1. The biggest threat to the system is the external environment. “Optimism in global markets, reflected in higher share prices and corporate bond yields, may raise concerns about an excessive deviation of the prices of financial instruments from their fundamental values and an increase in the risk of a large price correction. The US stock exchange indices reached their record highs again. In the context of the historically low realized and expected volatility of the prices of financial instruments, these developments imply an increased sensitivity of the global financial system to shifts in the propensity to take investment risk,” the report said.

The FX mortgage loan portfolio is still of some concern for some of the banking sector members. However, the quality of the portfolio inspires no alarm.

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