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‘No threat’ to Polish banks after Credit Suisse rescue: gov’t spokesman

21.03.2023 09:00
Poland’s banking system is safe, the Polish government spokesman has said, after debt-ridden Credit Suisse, one of the world’s biggest banks, was bought by rival UBS in a Swiss government-backed deal.
Piotr Mller.
Piotr Müller.PAP/Tomasz Gzell

Piotr Müller made the declaration at a news conference in Warsaw on Monday, public broadcaster Polish Radio’s IAR news agency reported.

He said the government “sees no threat at this point” to the Polish banking system.

Fears over global financial system

The Swiss National Bank said the rescue deal for Credit Suisse on Sunday was “the best way to restore the confidence of financial markets and to manage risks to the economy,” the British broadcaster BBC reported.

The last-minute deal, designed to rescue Credit Suisse before the financial markets opened on Monday, valued the bank at just over USD 3.15 billion, a fraction of its USD 8 billion price tag on Friday, according to the BBC.

It came amid fears over the global financial system after two smaller US banks, Silicon Valley Bank and Signature Bank, failed in recent weeks, according to news reports.

US financial regulators moved to guarantee all deposits in the two failed banks, the IAR news agency reported.

‘No threat to Polish banks at the moment’  

Müller told reporters: “Our situation when it comes to the banking system is a bit different, safer, than in these countries.”

He added that Poland’s biggest banks had “a differently constructed financial portfolio.”

The government spokesman stated: “And so we see no threats in this area at the moment, but we are obviously monitoring the situation, because let’s bear in mind that we are dealing here with a large US bank and an enormous bank in Switzerland.”

Müller told reporters that the US and Swiss governments had "made the right response,” which “reassures other entities on the international market.”

Meanwhile, following the Credit Suisse rescue deal, the US Federal Reserve on Sunday said it had joined with the Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank in a coordinated action “to enhance the provision of liquidity through the standing US dollar swap line arrangements,” the Reuters news agency reported.

As part of the effort, which is designed to stave off market panic over the health of the financial system, as of Monday banks will be able to buy US dollars at auctions every day, rather than on a weekly basis, Polish state news agency PAP reported. 


Source: IAR, PAP, BBC, Reuters, bankier.pl

Click on the audio player above to listen to a report by Radio Poland's Piotr Miszczuk.