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.
The programme extending the paid parent leave is to cost taxpayers PLN 2 billion. If all eligible parents were to participate, the figure should amount to as much as PLN 5.2 billion. However, already while drafting the programme, the government assumed that some of them will not be able and others will not want to participate. The estimates show that the amount of PLN 2 billion is also a waste, since it will not increase the number of children born.
Five steps – and not one more – is supposedly all the Minister of Health needs to reform the health care system. The problem is he presented no details, only catchy slogans. No costs of the reform were mentioned. The one thing we know for sure is that the government plans to spend PLN 100 million a year for subsidising in vitro procedures.
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.
Local governments have abandoned their dreams of the cadastral tax for now, but they are still after higher revenues from land and buildings.They came up with geographical tax progression in order to save the budgets of communes [gmina]. Respectively, the real estate tax rates would be higher in sub-regions where GDP per capita stands above the national average.
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.
In fear of corruption investors created barriers, which unintentionally contributed to a series of bankruptcies of construction companies. It will be difficult to relax the straightjacket of regulations without triggering more corruption.
When Prime Minister Donald Tusk addressed parliament last week he was speaking to a much wider audience than just the deputies sitting in front of him and the national public – key recipients of his message were the analysts whose recommendations guide the decisions of both equity and fixed income foreign investors.