The new taxes that the Polish government is planning to impose on the country’s banks has raised concerns among local bankers that the volume of lending activity could be hit, slowing the pace of the economy. Piotr Popławski of BNP Paribas warns that the Polish banking sector could be thrown into crisis, even though they currently meet all capital requirements. “A new tax on assets will hurt the profitability of these institutions, or even lead to a shortage of capital,” Popławski wrote in an official note.
He estimates that converting Swiss franc mortgages would cost the Polish lenders
up to PLN 45bn. “If problems with providing financing to the economy turn out
to be serious, the Polish Central Bank will be forced provide low-margins financing for the biggest projects,” he adds.
In the meantime, however, most Polish banks are already passing the extra costs to their clients. Along with increasing the fees on retail accounts, they’re also raising margins on mortgages as a result of the new tax, which has yet to be implemented.
