Moody's: outlook for banking system remains stable

The outlook for the Polish banking system remains stable due to strong economic growth and rising wages, which help to maintain demand for banking products and support the quality of the loan portfolio, rating agency Moody's said in a report. "The low level of private sector debt will support credit growth, and the quality of loan portfolio will slightly improve as strong economy and wage growth contribute to borrowers' creditworthiness," said Moody's analyst Melina Skouridou, cited in the report.

The agency warned, however, that the elevated legal risk associated with large volumes of Swiss franc mortgage loans could hurt profitability in the future.

(PAP)