The Polish banking sector has passed a series of stress tests by the European Central Bank, according to Poland’s Financial Supervision Authority (KNF). The sector had a marginal capital shortage of just PLN 379.9m. Tomasz Piwowarski, the director of banking inspections at KNF, said the results confirm the Polish financial sector’s high resistance to shock scenarios. “The banking sector is well-capitalized, effective and resilient to shocks, the measure of which is the scale of surplus capital,” Piwowarski said.
ECB revised the quality of assets from Poland’s top 15 banks, which represents about 79 percent of the country’s commercial banking sector. More than 60 percent of the banks would get through the shock scenario with Tier 1 capital in excess of 13 percent, according to the report. This gives the sector a wide buffer when compared with the 8-percent standard floor and the established 5.5-percent floor for such a crisis scenario.
