NBP: banks should try to reverse the gradual decline in credit in their assets
The National Bank of Poland (NBP) recommends reversing the gradual decline of loans in banks' assets, as highlighted in its latest Financial Stability Report. Banks should address negative external factors that limit credit supply and shift focus toward increasing private-sector financing.
While the decline in the credit-to-GDP ratio is mainly driven by reduced demand, supply-side constraints favor public-sector financing. NBP suggests that modifying the asset tax could improve credit availability, particularly for businesses, which is crucial for long-term economic growth.
NBP's analysis, based on data up to October 31, 2024, emphasizes the need to stimulate corporate credit, which would support economic expansion and balance the credit structure in Poland.
