World BankInternational Monetary Fund2014-03-252014-03-252014-01https://hdl.handle.net/10986/17355Diversifying Poland's financial system to meet new demands while preserving its resilience and stability is the key task ahead for financial policymakers. Over the past decade, the financial system has grown rapidly and risks have been well managed along the way. To maintain this track record and supply the financial services needed to support the economy's growth, it will be important to develop nonbank financial intermediation, prepare for possible further consolidation and exit of financial institutions, especially cooperatives, credit unions (SKOKs), and small banks, and promote a competitive banking system, relying less on foreign funding. While these developments will be largely market driven, they need to be supported by enabling regulatory reform and the modernization of the financial oversight framework: supervision focused on risk management, including an independent systemic risk perspective, strong safety nets, and state-of-the-art resolution tools will be indispensable. A joint IMF-World Bank mission visited Poland from February 19 - March 6, 2013 to undertake an update of the Financial Sector Assessment Program (FSAP) conducted in 2006. This report summarizes the main findings of the mission, identifies key financial sector vulnerabilities, and provides policy recommendations.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNTINGACCOUNTING STANDARDSASSET CLASSASSET CLASSESASSET PRICESASSET QUALITYBACKED SECURITIESBALANCE SHEETBALANCE SHEETSBANK BALANCE SHEETSBANK CREDITBANK DEBTBANK GUARANTEEBANKING CRISISBANKING SECTORBANKING SECTOR ASSETSBANKING SECTORSBANKING SYSTEMBANKING UNIONBANKRUPTCYBONDBOND INVESTORBOND MARKETBOND MARKETSBONDSBORROWERCAPITAL ADEQUACYCAPITAL FLOWSCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL REQUIREMENTSCENTRAL BANKSCOLLECTIVE INVESTMENTCOMMERCIAL BANKCOMMERCIAL BANK ASSETSCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMMERCIAL MORTGAGECONFLICTS OF INTERESTCONSOLIDATION PROCESSCONSUMER LOANCONSUMER LOANSCONSUMER PROTECTIONCOOPERATIVE BANKSCORPORATE GOVERNANCECORPORATE STOCKCREDIBILITYCREDIT BUREAUCREDIT EXPANSIONCREDIT GROWTHCREDIT INSTITUTIONSCREDIT LINECREDIT QUALITYCREDIT RISKCREDIT UNIONCREDIT UNIONSCREDITORCREDITOR CLAIMSCREDITOR RIGHTSCREDITORSCURRENCYCURRENCY MATCHINGCURRENCY MISMATCHESDEBTDEBT INSTRUMENTSDEBT SECURITIESDEBTORDEPOSITDEPOSIT INSURANCEDEPOSITORDEPOSITORSDEPOSITSDIRECT INVESTMENTDOMESTIC BANKSDOMESTIC BONDDOMESTIC BOND MARKETSDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC INSTITUTIONAL INVESTORSDOMESTIC LIQUIDITYDOMESTIC MARKETSECONOMIC DEVELOPMENTEXCHANGE COMMISSIONEXPENDITUREEXTERNAL DEBTEXTERNAL INVESTORSFINANCIAL ASSETSFINANCIAL CONTAGIONFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL SAVINGSFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL SYSTEMFINANCING REQUIREMENTSFLOATING EXCHANGE RATEFORECLOSUREFORECLOSURE PROCEDURESFORECLOSURESFOREIGN BANKSFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE RISKFOREIGN INVESTMENTFOREIGN INVESTORFOREIGN INVESTORSGOVERNANCE ISSUESGOVERNMENT BONDGOVERNMENT BOND YIELDGOVERNMENT BONDSGROSS DOMESTIC PRODUCTGUARANTEE FUNDHOLDINGSHOST COUNTRYINDEBTEDNESSINFLATIONINFORMATION TECHNOLOGYINSTITUTIONAL INVESTORSINSTRUMENTINSURANCE CORPORATIONINSURANCE PREMIUMSINTEREST INCOMEINTEREST RATEINTEREST RATE SWAPSINTEREST RATESINTERNAL AUDITSINTERNATIONAL STANDARDSINVESTMENT STRATEGIESINVESTOR BASEISSUANCEJUDICIAL SYSTEMLEGAL FRAMEWORKLEGAL PROTECTIONLEGAL PROTECTIONSLEGAL SYSTEMLIABILITYLIABILITY MANAGEMENTLIQUIDATIONLIQUIDITYLIQUIDITY PROBLEMSLOANLOAN PORTFOLIOLOAN PORTFOLIOSLONG-TERM CAPITALLOSS OF CONFIDENCEMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMANDATORY PENSION FUNDSMARKET INSTRUMENTSMARKET SHAREMARKET STRUCTUREMARKET SUPERVISIONMATURITIESMATURITYMONETARY POLICYMORTGAGEMORTGAGE LOANMORTGAGE LOANSMORTGAGE MARKETMORTGAGESMUNICIPAL BONDSMUTUAL FUNDSNATIONAL BANKNATIONAL DEBTNATIONAL SAVINGSNON-PERFORMING LOANNONPERFORMING LOANSNPLOPEN MARKETOPERATIONAL INDEPENDENCEOUTSTANDING STOCKPENSIONPENSION FUNDPENSION FUNDSPENSION REFORMPENSION REFORMSPENSION SYSTEMPENSIONSPORTFOLIOPORTFOLIO INFLOWSPORTFOLIOSPRUDENTIAL REGULATIONSPRUDENTIAL SUPERVISIONPUBLIC DEBTRATES OF INTERESTREAL ESTATE COLLATERALREGULATORY CONSTRAINTSRESERVERESERVESRESIDENTIAL MORTGAGERESIDENTIAL MORTGAGESRISK FACTORRISK FACTORSRISK MANAGEMENTRISK PROFILESAFETY NETSAFETY NETSSALE OF STOCKSSECURITIESSECURITIES MARKETSECURITY INTERESTSSHARE OF ASSETSSHAREHOLDERSOLVENCYSOVEREIGN BONDSTOCK EXCHANGESUPERVISORY AGENCYSUPERVISORY AUTHORITYSUPERVISORY BOARDSUPERVISORY POWERSTAXTERRORISMTRANSFER OF SECURITYTRANSPARENCYTREASURYTREATYTRUSTEESTURNOVERUNIVERSAL BANKSVALUATIONS10.1596/17355