Polish banks foresaw tighter monetary policies

Polish banks expected tighter monetary policies in the fourth quarter of 2008 along with drops in mortgage demand, according to a survey published by the National Bank of Poland (NBP).

The survey, which was conducted at the end of September and through October before the financial crisis has crippled the banking system and caused stocks to drop to record lows, revealed that banks expected an "extensive" tightening in lending for small and medium-sized businesses, as well as a drop in credit demand for larger firms.

The report also showed that banks expected an extensive drop in the demand for mortgages.

Source: Reuters