Changes in the pension system are neutral for Poland’s present rating but may limit upward mobility of Poland’s rating from the current A2 level. Such a degree of reform reversal would not be likely in countries with the highest rating, says Jaime Reusche, an analyst in the group of sovereign credit risk at Moody’s Investors Service.
Approximately 10 million non-cash transactions are carried out daily in Poland and more than half of them are conducted without the use of payment cards. They are performed with the participation of banks via the National Clearing House (pol. Krajowa Izba Rozliczeniowa — KIR). This unvarying picture may soon be subject to a radical change. The market for payment settlements has just been opened to non-bank entities that have been waiting for such an opportunity for a long time.
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.
Nicholas Spiro of Spiro Sovereign Strategy weighs his words carefully when asked for his assessment of the current bull market for Polish bonds. He steers clear of the word “bubble” but then settles on a less scary term “frothy”.
Celowa Spółka Inwestycyjna (CSI), a special purpose company, is a provisional name of the company which is being created for the implementation of the government’s Polish Investments programme. Together with Bank Gospodarstwa Krajowego (BGK), it shall provide financial support when either the first or the last zloty is needed in the process of implementing major infrastructure projects - says Paweł Tamborski, Deputy Minister of the Treasury in an interview for Financial Observer.
The net profit of banks after nine months of the year exceeded PLN 11 billion, according to the Polish Financial Supervision Authority (KNF). It is PLN 100 million less than the result after three quarters of the record year 2011. However, this year’s result was generated in different macroeconomic conditions.
“Large banks dictate to their governments what to do, and banks in turn are too strictly steered by regulators, who want to influence banking products, but are not interested in the systemic risk generated by these banks. Functions are confused,” says Józef Wancer, a banker with many years’ experience, currently an advisor to the Board of an advisory company Deloitte. “Europe should follow the US example more closely.”, he adds.
Several days ago, Credit Unions (Polish: SKOK) have been covered by supervision of the Polish Financial Supervision Authority (PFSA). Within the next three months, Unions’ financial statements will be examined by statutory auditors. Only when the audits are completed, it will be possible to state if the Unions’ assets, or the scale of loans they have granted, are covered by the funds they accumulated to a sufficient extent.
For most banks loans from parent banks are the cheapest form of loan funding. The crisis has dried out that source, however, so banks have to devise new methods to raise the necessary capital – claims Andrzej Topiński, Chief Economist of the Credit Information Bureau.