Financial Sector Assessment Program Update : Republic of Poland - Credit, Growth, and Financial Stability

Financial Sector Assessment Program Update : Republic of Poland - Credit, Growth, and Financial Stability

Two main issues at the interface between economic growth and financial stability are germane to this year's article four consultation and the Financial Sector Assessment Program (FSAP) update: the first is why the recent pace of financial catc...

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Bibliographic Details
Main Authors:	World Bank, International Monetary Fund
Format:	Financial Sector Assessment Program (FSAP)
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ACCOUNTING AMOUNT OF LOANS ARREARS ASSET QUALITY ASSETS RATIO AUDITING BALANCE SHEET BALANCE SHEETS BANK ACCOUNT BANK BALANCE SHEETS BANK CREDIT BANK FAILURES BANK INTERMEDIATION BANK LOAN BANK LOANS BANK OF ENGLAND BANK PROFITABILITY BANKING CRISES BANKING INSTITUTION BANKING SECTOR BANKING SECTOR ASSETS BANKING SUPERVISION BANKING SYSTEM BOND BOND ISSUANCE BORROWER CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL INFLOWS CAPITAL MARKETS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKS CLASSIFIED LOANS COLLATERAL COLLATERAL RISK COMMERCIAL BANKS CONSUMER DURABLES CONSUMER PRICE INDEX CONTRACT ENFORCEMENT CORPORATE BORROWERS CORPORATE DEBT CORPORATE INVESTMENT CREDIT APPROVAL CREDIT ASSESSMENT CREDIT CARD CREDIT CARDS CREDIT EXPANSION CREDIT GROWTH CREDIT HISTORY CREDIT INSTITUTIONS CREDIT MARKET CREDIT MARKETS CREDIT POLICIES CREDIT QUALITY CREDIT RISK CREDIT RISK MODELING CREDIT RISKS CREDITOR CURRENCY MISMATCHES DANMARKS NATIONALBANK DEBT DEBT BURDEN DEBT SECURITIES DEBT SERVICE DEBT-SERVICE DEBTOR DEBTORS DEFAULT RISK DEMAND-SIDE FACTORS DEPOSIT DEPOSITS DOMESTIC BANKS DOMESTIC CURRENCY DOMESTIC INTEREST RATES DUMMY VARIABLE ECONOMIC DEVELOPMENT EMPLOYMENT ENFORCEMENT PROCEDURE ENFORCEMENT PROCESS EQUITY CAPITAL EXCHANGE RATE EXCHANGE RATES EXTERNAL BORROWING FINANCIAL ASSETS FINANCIAL DEEPENING FINANCIAL DEVELOPMENT FINANCIAL INTEGRATION FINANCIAL RISKS FINANCIAL SECTOR ASSESSMENT FINANCIAL STABILITY FINANCIAL STRENGTH FINANCIAL SYSTEM FINANCIAL SYSTEMS FIXED INVESTMENT FORECLOSURE FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY DEPOSITS FOREIGN CURRENCY LOAN FOREIGN CURRENCY LOANS FOREIGN CURRENCY RISKS FOREIGN EXCHANGE HEDGES HOME MARKETS HOUSEHOLD INCOMES HOUSING HOUSING FINANCE HOUSING PRICES INCOME LEVELS INDEBTEDNESS INFLATION INSTITUTIONAL DEVELOPMENT INTEREST INCOME INTEREST RATE DIFFERENTIAL INTERNATIONAL BANK INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL INVESTMENT INVESTMENT FUNDS LEGAL FRAMEWORK LENDING INTEREST RATES LIQUID ASSETS LIQUID MARKETS LIQUIDITY LIQUIDITY RATIO LIQUIDITY RISK LIQUIDITY RISKS LOAN LOAN AMOUNTS LOAN CLASSIFICATION LOAN CONTRACTS LOAN DEFAULTS LOAN DEMAND LOAN PERIOD LOAN PORTFOLIO LOAN PORTFOLIOS LOCAL CURRENCY LONG-TERM MATURITY MACROECONOMIC ENVIRONMENT MACROECONOMIC RISKS MACROECONOMIC STABILITY MACROECONOMIC VARIABLES MARKET DATA MARKET DISCIPLINE MARKET INFRASTRUCTURE MARKET PARTICIPANTS MARKET RISK MARKET SHARES MARKET VALUE MARKET VALUES MONETARY FUND MONETARY POLICY MORAL SUASION MORTGAGE MORTGAGE INTEREST MORTGAGE LENDING MORTGAGE LOAN MORTGAGE LOANS MORTGAGE MARKET MORTGAGES NET INTEREST MARGIN NONPERFORMING LOAN NONPERFORMING LOANS NPL OPERATING COSTS OUTSTANDING BANK LOANS OUTSTANDING CREDIT OUTSTANDING LOANS PLEDGES POLICY RESPONSE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIOS PRICE RISKS PRIMARY MARKET PRIVATE SECTOR CREDIT PROBABILITY OF DEFAULT REAL EXCHANGE RATE REAL INTEREST REAL INTEREST RATE REAL INTEREST RATES REMITTANCES REPAYMENT REPAYMENT CAPACITY RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RETAINED EARNINGS RETURN RETURN ON ASSETS RETURNS RISK ASSESSMENTS RISK MANAGEMENT RISK MANAGEMENT SYSTEMS SECONDARY MARKET SHARE OF CREDIT SHORT-TERM EXTERNAL DEBT SHORT-TERM INTEREST RATE SMALL BANKS SOURCE OF CREDIT STOCK EXCHANGE STOCK MARKET STOCK MARKET INDEX STOCK MARKETS STOCKS SUBSIDIARIES SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPPLY OF CREDIT SWAP SWAP MARKET SWAPS SYSTEMIC RISK TAX TIER 1 CAPITAL TRADING TRANSITION COUNTRIES TRANSPARENCY VALUE OF ASSETS VARIABLE INTEREST RATES WAGES WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2006/10/18019640/poland-credit-growth-financial-stability-technical-note http://hdl.handle.net/10986/16056

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Summary:	Two main issues at the interface between economic growth and financial stability are germane to this year's article four consultation and the Financial Sector Assessment Program (FSAP) update: the first is why the recent pace of financial catching-up has been so much slower in Poland than in its regional peers, and whether this might hamper Poland's long-term economic prospects; and the second question is how significant the prudential risks associated with rapid growth in housing loans are. The chapter is organized as follows: section II.B discusses credit developments in the last decade and factors driving these developments and assesses implications for economic growth. Section II.C examines reasons for rapid growth of foreign currency lending and implications for financial stability. Section II.D (and appendix) review cross-country experiences with policy responses to rapid credit growth of foreign currency credit and discuss recent policy measures taken in Poland. Section II.E concludes the chapter.