Banks may have problems
The Polish government’s high level of intervention in the banking sector and the economic slowdown could affect the profitability of these institutions.
Fitch has placed the ratings of several banks on a watch list, with a negative indication. This includes Pekao Bank, mBank, Santander Bank Polska, BNP Paribas and ING Bank Slaski. The reason is the credit vacations recently introduced by the government. The agency saw this as further evidence that the Polish authorities are ready to intervene in the banking sector. They may burden it with additional costs. Such a high level of intervention and the coming economic slowdown could significantly affect banks’ profitability.
The banks’ raisings will be on the operational list until Fitch assesses how a credit vacation could affect these institutions’ key financial indicators.
