Polish financial system is stable, risks are moderate - central bank

The National Bank of Poland (NBP) wrote in a December 2019 Financial Stability Report that the Polish financial system was stable while the systemic risk remained at a moderate level. According to the NBP, the credit growth rate and indebtedness level in relation to GDP remain moderate while the structure of the banks' financing is secure. "The Polish banking system remains resilient to shocks due to accumulated capital and low leverage," NBP reported, adding that the majority of banks met capital requirements. The report admitted that some credit institutions were in a difficult situation and that this could have a negative impact on other banks. In this context, the central bank pointed to the cooperative banking sector, which, in the NBP's opinion, should start consolidating.