1. Market Research
  2. > Financial Services
  3. > Banking Market Trends
  4. > Intellinews - Polish Banking Report - July 2013

Intellinews - Polish Banking Report - July 2013

  • August 2013
  • -
  • Emerging Markets Direct Media Holdings
  • -
  • 37 pages

Summary

Table of Contents

Search Inside

Poland’s banking system is among the best positioned in Central and Eastern Europe (CEE) in terms of profitability, capitalisation and stability. The sector’s strength is supported by prudent regulatory supervision and by the country’s economic resilience. Poland is the only country in CEE that has been avoiding recession since the onset of the global economic crisis in 2008 and the following crisis in the eurozone, which is the country’s main trading partner. GDP growth has been underpinned by robust consumer spending and domestic investments, which have supported also the banking sector’s lending activity.

Poland’s economy suffered a significant slowdown over the last year, which led to a deterioration in the operating environment, but the overall condition of the banking sector remains good, which is visible in the sector’s high earnings, healthy capitalisation level, sound liquidity, improving funding stability and continued, although at a slower pace, lending growth. There are two major challenges for the banking system - a deteriorating asset quality and a tightening of interest margins that is caused by an intense competition for depositors amid falling interest rates and subdued credit demand.

Looking ahead, the worsened macroeconomic conditions and the lower interest rate environment, combined with tough competition for deposits, are likely to have a negative effect on Polish banks’ earnings performance this year, as the factors point at a decline in revenue (both interest and non-interest) and at weak interest margins combined with subdued lending activity, while operating costs and impairment charges are likely to increase. In addition, the implementation of a new special bank levy as of 2014 will exert extra pressure on profitability.

Despite those challenges, the Polish banking sector, which is about 70%-owned by foreign lenders, remains one of the healthiest in CEE and a key market for international players seeking growth and stability. Further consolidation on the Polish banking market is widely expected given the low level of concentration, the slowdown in market growth, which makes it difficult to grow organically, and the drop in interest rates, which makes it tough to generate profits for banks that lack sufficient scale of operations. Some foreign banks have looked for an exit to boost their capital positions and meet tightening regulatory requirements. But other, mainly bigger players are looking for such opportunities to strengthen their positions in the sector.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
Get This Report
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Hardware Security Modules Market by Type, Application, Industry, and Geography - Global Forecast to 2022

Hardware Security Modules Market by Type, Application, Industry, and Geography - Global Forecast to 2022

  • $ 5650
  • Industry report
  • March 2017
  • by MarketsandMarkets

“The hardware security modules market is likely to grow at a CAGR of 12.87% during the forecast period” The hardware security modules market is expected to reach USD 1,101.2 million by 2022, at a CAGR ...

UK Savings: 2016 Review, Forecasts and Future Opportunities

UK Savings: 2016 Review, Forecasts and Future Opportunities

  • $ 5250
  • Industry report
  • January 2017
  • by GlobalData

Summary Retail deposits for 2016 are expected to be 6% higher than in 2015. However, market conditions over the next few years are predicted to dampen prospects for future growth. UK retail deposits will ...

Banking as a Marketplace: Opportunities and Threats

Banking as a Marketplace: Opportunities and Threats

  • $ 5250
  • Industry report
  • March 2017
  • by GlobalData

Banking as a Marketplace: Opportunities and Threats Summary EU-wide and UK-specific regulations will force banks to open up access to their customer data by January 2018. This will have profound implications ...

Global Banking Industry - 2017

March 2017 $ 4500

ref:plp2013

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.