As public money flows into venture capital funds in Poland, the supply of available financing is larger than the pool of projects fit for investment. One solution to this problem would be to engage start-ups from east of the Polish border.
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.
Generally high profits were due to factors whose influence has already expired or is expiring. Other factors that had negative impact on the results struck simultaneously in the first quarter and will exert their influence in the coming months. The benefits of the strengthening economy will probably be felt by banks only at the end of the year.
It is 2006. The Polish Financial Supervision Authority (KNF) is working on Recommendation S regarding foreign currency mortgages. It is encouraged by large banks which do not want to take part in the risky race for profits from selling housing loans in Swiss francs. However, the KNF did not have enough determination to completely block the market for those loans. What would have happened if it had?
The Eurozone’s sovereign-debt crisis both reflected and reinforced the banking crisis. Instituting a common regulatory framework in a form of a Eurozone-wide banking union is aimed to sever the link between public debt and banks' solvency. But it is still not enough to bring long-term financial stability to the EU and euro area.
Twenty-five years after Poland’s political and economic transformation, the country’s banking sector has proven one of its biggest success stories. Poland’s banks have weathered several global downturns – including the recent global economic crisis – without the need of a single bailout. Poland’s banking sector is considered one of the strongest in Europe and this year is poised to bring in record profits.
The unexpected decision by the Swiss National Bank Thursday to stop defending the longtime benchmark of 1.20 francs to the euro has set off panic across central Europe, with Poland the most exposed of all the region’s countries to the subsequent steep rise of the Swiss currency.
Although the economic crisis has largely ended, European banks have not yet regained their balance, and their biggest problem is a lack of profitability. Although their capital strength has ceased to be an issue, lending will remain stagnant for a some years and companies need an integrated and effective single capital market, says Jan Schildbach, Head of the Banking, Financial Markets and Regulation team at Deutsche Bank Research.
It is fair to say that the euro crisis was a game-changer in our thinking about the viability of currency unions in general and euro accession in particular. I will try to be brief and get right to the point. I would like to share with you some thoughts on what the euro crisis and its legacy implies for non-euro EU countries, such as Poland.