18:13 15 October 2024
mBank VP: banking sector facing dependency on external capital for 25 years
Polish banks are increasingly reliant on external capital due to regulatory requirements like the Long-Term Financing Ratio (WFD) and MREL, says mBank Vice President Marek Lusztyn. He explained that the sector is now more dependent on external financing than it has been in the past 25 years. This reliance makes the banking sector vulnerable to investor sentiment, which could lead to refinancing issues and challenges in supporting the real economy.
In July 2023, Poland's Financial Supervision Authority (KNF) introduced WFD recommendations to reduce risks associated with mortgage financing. From 2027, banks must maintain a 40% long-term financing ratio. ING Bank Śląski Vice President Bożena Graczyk noted that fulfilling these requirements may require over PLN 50 billion in new issuances, surpassing MREL demands.
