"The shock caused by the COVID-19 pandemic does not put Poland’s financial stability at risk, although the risk remains elevated,” the National Bank of Poland (NBP) said in its periodic Financial Stability Report released on Thursday.
It added that the resilience of Poland's banking sector was supported by "the absence of financial and macroeconomic imbalances" before the outbreak of the pandemic, a strong capacity to absorb losses amid "high levels and high quality of capital in the banking sector," and support measures taken by public institutions.
Banking sentiment declined in Poland last month amid growing concerns over the coronavirus and its impact on the economy, a study has found.
The Polish economy contracted 1.5 percent in the third quarter of this year, the country’s Central Statistical Office (GUS) said last week in an updated estimate.
The Polish central bank last month updated its GDP growth forecasts for the country, saying it expected the economy to contract by 3.5 percent this year amid the COVID-19 shock, followed by 3.1 percent growth in 2021.
(gs/pk)
Source: PAP, nbp.pl