Republic of Poland: Financial System Stability Assessment

IMF Staff Country Reports, February 6, 2019

Source details

The IMF mission assessed stability and performance of Polish financial systems.
The banking system in the aggregate shows resilience to adverse shocks, although some medium-sized banks appear weak.
Sovereign–financial institution linkages have increased.
Exposures to foreign-exchange mortgages have declined.
Important shortcomings identified in prudential oversight reflect budgetary constraints and a governance framework that compromises operational independence.
Arrangements for crisis management are generally sound, although measures are required to strengthen the independence of the Bank Guarantee Fund and powers of the Polish Financial Supervision Authority (PFSA).
The Polish authorities welcomed the IMF’s and World Bank’s comprehensive review of the supervisory and regulatory framework in Poland and provided feedback for every recommendation made in the report.

Strengthen prudential oversight to address shortcomings stemming from budgetary constraints and governance weaknesses.
Enhance operational independence of supervisory bodies to reduce governance-related compromises.
Increase the independence of the Bank Guarantee Fund.
Expand the powers of the Polish Financial Supervision Authority (PFSA) to improve supervisory effectiveness.
Consider targeted measures for medium-sized banks that appear weak to preserve aggregate system resilience.

Subjects: Banking, Capital adequacy requirements, Commercial banks, Cooperative banks, Credit bureaus, Financial institutions, Financial markets, Financial regulation and supervision, Financial sector policy and analysis, Financial sector stability
Keywords: Capital adequacy requirements, capital ratio, Commercial banks, Cooperative banks, CR, Credit bureaus, credit risk, Eastern Europe, Europe, financial institution, Financial sector stability, Global, increase PFSA independence, interest rate, ISCR, PFSA board, PFSA governance, PFSA supervision

Source: Republic of Poland: Financial System Stability Assessment (IMF Staff Country Report, February 6, 2019).