Analysts say Poland’s banking sector is ripe for consolidation

While there is little doubt that financial giants Pekao and PKO BP will remain at the top of the ladder as the domestic market’s no. 1 and 2 banks, experts now contend that due to the increased importance of segment specialization and cost cutting to remain profitable Poland’s less dominant players are ripe for consolidation. As evidence of this, they point out the recent merger of Bank Handlowy and Citibank, tie-ups slated to take place between Wielkopolski Bank Kredytowy and Bank Zachodni in May, and between Bank Slaski and ING Polska by the end of the year, and perhaps the biggest merger ever, between Krakow-based Bank Przemyslowo-Handlowy and Powszechny Bank Kredytowy. Insiders say the banking market offers enough room for five to six large groups. (Prawo i Gospodarka, p.1) M. S.-C.