Republic of Poland: Technical Note on Stress Testing the Banking Sector
IMF Staff Country Reports, August 15, 2013
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Bibliographic details
- Published: August 15, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484331163.002
Overview
- Publication date: August 15, 2013
- Purpose: Discusses results of stress testing of the banking sector in Poland.
- Main conclusion: The Polish banking system is well capitalized and liquid, as confirmed by stress tests results.
Key findings
- Aggregate resilience:
- Polish banks, in aggregate, are resilient even under severe adverse scenarios.
- Vulnerabilities concentrated in smaller banks:
- Some small banks could fail to meet minimum regulatory capital and liquidity requirements in severe adverse scenarios.
- Tests showed that only small banks, together representing up to 30 percent of the assets in the system, may have problems meeting the Basel III capital requirements in the recession scenarios.
- Liquidity and capitalization:
- The system is described as well capitalized and liquid, confirmed by stress test results.
Stress test scenarios and outcomes
- Scenario types referenced:
- Recession scenarios (explicitly linked to potential Basel III shortfalls for some small banks).
- Severe adverse scenarios (system-wide resilience noted).
- Outcomes:
- Overall system impact from failures of small banks is assessed as having little impact on the overall banking system despite some individual shortfalls.
Policy implications and considerations
- Monitor smaller banks:
- Targeted supervisory attention to smaller banks that represent up to 30 percent of system assets may be warranted to ensure compliance with Basel III capital requirements under recession scenarios.
- Maintain system-wide liquidity and capital buffers:
- Preservation of the overall well-capitalized and liquid status of the banking system supports resilience under severe adverse scenarios.
International Monetary Fund. Monetary and Capital Markets Department "Republic of Poland: Technical Note on Stress Testing the Banking Sector", IMF Staff Country Reports 2013, 261 (2013).