S&P: Poland's banking system is adequately capitalized.

By bne IntelliNews August 9, 2012
Poland's banking system is adequately capitalized, although with a loan-to-deposit ratio of just under 115%, the sector remains dependent on parent-bank and other external funding (roughly two-thirds of banking sector assets is owned by foreign institutions), according to Standard & Poor's Ratings Services. In the agency's view, there is a risk that foreign parent bank difficulties could cause the parents to reduce cross-border exposure to their subsidiaries significantly, thereby reducing credit availability and, in turn, economic growth. However, it notes that the financial regulator is encouraging banks to retain profits and is closely monitoring their liquidity. Moreover, the National Bank of Poland (NBP) is prepared to provide liquidity support to the banking system, including offering foreign-exchange swaps, and has also introduced legislation allowing for timely intervention by the bank guarantee fund, S&P concludes.

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