Polish banks' performance recovery faces growing challenges

Polish banks' profitability started to recover in 2021 and into 2022 on the back of rising interest rates and the normalizing cost of risk, supported by a swift economic recovery from the pandemic, says Fitch Ratings in a new report. However, this recovery faces challenges in 2022 due to a slowing economy, higher inflation, and weaker consumer sentiment. and the continued impact of legal risks. Additionally, new governmental proposals are likely to be costly for the sector.