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Central Bank Warns That Balance Of Risks For Poland's Bank Sector Is Deteriorating

NBP

The NBP says in its December Financial Stability Report that Poland's "banking system remains stable but since the release of the last edition of the Report, the overall assessment of domestic financial stability has worsened," due to an unfavourable legal, macroeconomic and regulatory environment.

  • The central bank singles out FX housing loans as the key risk to Poland's financial stability, while acknowledging that domestic lenders have increased their resilience to the risk via a suite of remedial measures.
  • The NBP says that legal and regulatory solutions have been undermined or applied asymmetrically to different market participants "This especially applies to some aspects of FX housing loans and universal loan holidays offered to zloty loan holders irrespective of their financial standing."
  • Click here to see the full report.

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