Moody’s: Polish banking sector has ‘strong fundamentals’

While Polish banks enjoy strong fundamentals, their profitability could come under increased pressure once the FX mortgage bill is approved, rating agency Moody's said. “The quality of loans will improve slightly, the stronger capital situation supports the resumption of dividends by some banks. Solid profitability, close to the CEE average, remains under pressure due to low interest rates and the bank tax introduced in 2016. The increase in lending and decreasing charges due to overdue liabilities affect this level of pressure to some extent. The draft law on the conversion of mortgage currency loans (mainly in CHF) could significantly reduce the profitability of banks,” Moody’s said. The agency reassures that with low costs of financing and growing wages will support credit growth and boost the quality of loans.