KNF: there is room for consolidation in Polish banking sector
Jacek Jastrzębski, chairman of the Polish Financial Supervision Authority (KNF), believes there is room for further consolidation in the Polish banking sector. He stated that KNF does not have a clear vision regarding the optimal concentration level in the banking market. The main potential risk in this area is the emergence of "too big to fail" entities. Jastrzębski mentioned during a panel at the European Financial Congress in Sopot that consolidation could naturally enhance profitability but might also lead to decreased competition and potential customer service deterioration.
However, he emphasized that it's currently not a major concern from a prudential risk perspective. Jastrzębski also defended the state's role in the Polish banking sector, citing the lack of significant private capital to complement state-owned capital.
