Poland’s banking system stable – NBP

The Polish financial system remains stable and can withstand even a major economic downturn, according to a report by the National Bank of Poland. “The high level of resilience of Polish banks is confirmed by the regular stress tests carried out by the National Bank of Poland. Even in a very pessimistic scenario the capital needs of the entire sector would be insignificant,” the bank said. The stress tests were performed by the NBP for two scenarios: the reference scenario (3.6 percent GDP growth, 8.8 percent unemployment and inflation at 1.4 percent) and the shock scenario (0.7 percent GDP growth, 10.2 percent unemployment and 3.2 percent inflation rate). The tests showed that most banks would be able to maintain reserve funds surplus under both test scenarios. The central bank said the stability of Poland’s financial system has improved over the past six months. The report is issued twice a year.