Poland's banks emerged from the first wave of the economic crisis relatively unscathed, but are now preparing for a second shock as the domestic economy slows and its foreign banks, which own almost two-thirds of the country's banking sector, face challenges at home. But, as in 2008, financial institutions in central Europe's largest economy are unlikely to need assistance to pull through.
The sector goes into the next crisis battle-hardened from its experience over the past five years and in solid financial shape. Poland's banks reported a record profit of 15.7bn zlotys ($5bn) in 2011 (a 37% increase compared with a year earlier) on the back of healthy increases in lending and a reduction in provisions. The sector has an overall core Tier 1 capital ratio of 12.2%, better than many banking systems in western Europe.
