Cheerful bankers
Pengab, a monthly index of sentiment in the banking sector performed by Pentor Research International under the auspices of the Polish Bank Association (ZBP), this month reached 44.1 points, 3.4 points higher than in March and 3.2 points higher than in April 2006.
The uptick in optimism reflected significant growth in the loan sector, as 87 percent of the bank outlets surveyed reported an increase in demand for loans. In addition, 65 percent of outlets saw increased demand for investment funds.
"This month's Pengab is the highest since October 1999," noted Pentor's president, Eugeniusz miłowski. "There is no banking activity in which we did not see improvement," he added. "We are at the peak of banking prosperity."
Pentor reported that bankers expect a rise in interest rates in the next three months. They also expect average inflation for 2007 to reach 2.91 percent.
As for the reaction to the renewed activity of the Sejm Investigation Commission on banking, bankers are less anxious about its work than during the first incarnation of the Commission last year.
Some 37.5 percent of bankers do not believe the Commission's activity will have a significant effect on the banking sector. Indeed, over 80 percent agree that all financial institutions ought to be scrutinized by such a panel.
Bankers are cautiously optimistic about the prospects for absorbing EU funds in 2007-2013. Some 45 percent of them estimate 51-75 percent of the funding will be used. Around 77 percent of bankers stress that the biggest hindrance to overcome in this area is administrative bureaucracy.
Apart from Pengab, Pentor's index of general prosperity has risen by three points since March, reaching 60.8 points, the best result since October 1998.
