Poland's banking system stable but risks increase says central bank

Rafał Guz/PAP

The Polish banking system remains stable but risks have grown, the National Bank of Poland (NBP) said in a report on Friday.

"Poland's banking sector remains resilient, however, the balance of risks is deteriorating," the NBP wrote in its Financial Stability Report.

"The bleaker macroeconomic outlook creates an unfavourable environment," the central bank went on to say. "Moreover, the changing legal circumstances and regulatory conditions are a source of uncertainty and additional burdens for banks."

According to the NBP, "Polish banks' capital is sufficient to absorb potential losses arising from the materialisation of even extreme macroeconomic scenarios" while the sector's liquidity "remains stable."

The NBP's report is based on data available up to October 31 2022.