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