Republic of Poland: Financial System Stability Assessment
IMF Staff Country Reports, July 23, 2013
Source details
- Canonical URL
- Republic of Poland: Financial System Stability Assessment
Other formats
Bibliographic details
- Published: July 23, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484397831.002
Executive summary
- Skillful policy management and sound fundamentals have allowed the economy to weather the global financial crisis, and the euro area turmoil.
- Risk drivers identified:
- slow growth abroad and domestically
- rising unemployment
- declining residential real estate prices
- Vulnerabilities identified:
- interconnectedness with the euro area
- exposure to foreign exchange risk and foreign investors, which may pressure bank funding, especially in the absence of long-term domestic funding sources
- Stress tests result:
- Vulnerabilities are not likely to become systemic, though some pockets of weakness were identified.
Major findings
- The economy has withstood the global financial crisis and euro area turmoil due to skillful policy management and sound fundamentals.
- External and domestic slowdowns are key risk drivers for financial stability.
- Residential real estate price declines are a material risk factor for the banking sector.
- Bank funding is potentially vulnerable to pressures stemming from foreign investor exposure and foreign exchange risk, particularly where long-term domestic funding is lacking.
Stress testing and systemic assessment
- Stress tests suggest vulnerabilities are not likely to become systemic.
- Some pockets of weakness were identified (no further quantification provided in the source summary).
Subject coverage and keywords
- Subjects: Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Foreign exchange, Loans, Mortgages, Stress testing
- Keywords: a number of bank, balance sheet, banking sector, banking system assets, capital market, Commercial banks, CR, FX mortgage, Global, interest rate, ISCR, loan portfolio, Loans, mortgage bank, Mortgages, resolution framework, risk management practice, sovereign bond, Stress testing
Content in this bundle
- Republic of Poland: Financial System Stability Assessment; IMF Country Report 13/221; June 28, 2013