Thanks to economic growth, the banking sector in Central and Southeastern Europe is seeing profits. This is helped by the fact that in some countries banks have already dealt with restructuring bad loans.
The effects of interest rates decrease, the reduction of interchange fees and other regulatory changes have already had a negative impact on the financial results of Polish banks.
The Warsaw Stock Exchange has to confront the challenge, skilfully attracting issuers from our region and enlisting participants among growing family-owned private companies - says Konrad Konarski, a partner in Baker&McKenzie.
Thanks to Supervisory Review and Evaluation Process (SREP) for the first time we will have a real assessment of banks’ business models across the EU, which is a key for assessment of sustainability. CE Financial Observer talks to Piers Haben, director in the European Banking Authority.
A quarter of a century after the formation of Tadeusz Mazowiecki’s government, in which Deputy Prime Minister Leszek Balcerowicz was responsible for the economic reforms, economists are trying to answer the question as to whether Poland has exhausted its opportunities of development and what impulses are needed for Poland to take advantage of future opportunities.
The role of banks in the financing of the Union's real economy and financial intermediation remains high, but the capital market will become relatively more important. Further reforms should accompany this transformation and improve the tools of the capital market, especially for SME sector - says Mario Nava from the European Commission.
The European Central Bank counteracts country-specific risk premia in eurozone, that hinders proper allocation of capital and incurs the risk of building up a new credit bubble. Meanwhile the eurozone is already waiting to cover huge write-off losses – said professor Hans Werner Sinn, president of Ifo Institute in Munich. Therefore, in the Polish debate about the entry into the eurozone he suggests – wait and see.
The Banking Union can be effective and give the potential to break the vicious cycle of fiscal and financial instability only if at the same time all necessary components are in place – a Single Rule Book, a Single Supervisory Mechanism, a Single Resolution Mechanism and financing arrangements. Quick entry to the Union would be beneficial for Poland – told Bernhard Speyer, former Managing Director at Deutsche Bank Research.
Macroprudential supervision is the copestone of the global financial safety that has emerged as a lesson learned from the crisis. Institutions responsible for carrying out macroprudential supervision have been established in many countries. Generally, this role is performed by central banks. Poland lags behind but the National Bank of Poland has developed a legislative proposal that would provide grounds for establishing macroprudential supervision in our country, too.
Anti-crisis regulations of the banking sector have a dark side. Bankers claim they can slow down growth due to reduced lending as well as force banks to transfer business from one country to another. And what will Poland do with regard to the proposed solutions? 'It will act in a cautious manner', said Marek Belka, governor of the National Bank of Poland at the Banking Forum.