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Countercyclical Buffer Could Return in Q4

POLAND
  • The Financial Stability Committee are to consider reimposing the countercyclical systemic risk buffer for banks – currently at 0% after being removed during the COVID-19 pandemic.
  • The 0% buffer has been retained for the rest of Q3, meaning the buffer could be reinstated at some point in Q4. The buffer dropping to zero was estimated to free around PLN 30bln in bank capital.
  • Premier Morawiecki is expected to attend a signing ceremony to formally confirm the deal with US’ Westinghouse for the first Polish nuclear power plant. The deal and announcement is largely as expected, with the government trailing the plans for a few months and signing a bridging loan for the deal in February.
  • There are no key releases due Wednesday, however the finance ministry auction 2025, 2028, 2029 and 2033 bonds this morning.

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