22:29 16 October 2024
Polish banks face funding challenges
Poland’s banking sector is now more dependent on external capital than at any time in the past 25 years, according to Marek Lusztyn, vice-president of mBank. New regulatory requirements, such as the long-term financing ratio (WFD) and the MREL obligations, have heightened this reliance.
During a debate at the "Banking & Insurance Forum," Lusztyn warned that any investor risk-off sentiment could create refinancing issues, impacting the real economy. This concern is amplified by Poland’s position as a frontline country since 2022.
The Polish Financial Supervision Authority (KNF) expects banks to maintain a 40% long-term funding ratio by 2027, which could require over PLN 50 billion in new issuances, according to Bożena Graczyk, vice-president of ING Bank Śląski.
Source: pl.investing.com
