Poland's banks still in good shape

Banks in Italy, Belgium, Great Britain, and other European states have been hit by the financial crisis, and on Tuesday the crisis hit Iceland, which raised debate on a hike in bank deposit insurance during a meeting in Luxembourg.

"Clearly anything we can do to give greater confidence among depositors is very important," said Irish Finance Minister Brian Lenihan to reporters. Meanwhile, Polish finance ministry is analyzing whether to change the level of guarantees for deposits, but a decision has not yet been maid, Magdalena Kobos, ministry's spokesperson told Reuters.

European governments are struggling to shelter banks and depositors from the financial crisis, while central banks are pumping emergency funds into banks to keep them afloat. The EU officials are debating an EU-wide minimum deposit insurance level of €100,000, which is less than the $250,000 written into the $700 billion US bailout plan.

Polish banks guarantee a 100 percent return for €1,000 deposit, while a 90 percent return for funds between €1,000 and €22,500. If the amount is greater than €22,500, then the return depends on the banks loses. The banks have managed to withstand the global financial crisis thanks to a strong deposit base. "We don't need any drastic changes. Our banking system has been in a very good condition for several years," said Krzysztof Pietraszkiewicz, head of the Polish Banking Association. (AO)

Source: Reuters, TVN CNBC