Improvement of the credit market in Poland

Krzysztof PietraszkiewiczPresident of Polish Bank Association

Tel Aviv 14 June 2012

THERE IS NO STABLE COUNTRY WITH UNSTABLE BANKS.

Area 312 679 km2

Population 38 135 000

Capital Warsaw, Population 1,702 mln

Currency Złoty (PLN) = 100 groszy (gr.)

Number of enterprises Over 3,5 million

Life expectancy 79,7 women, 71,0 men

GDP growth

POLAND

Unemployment in Poland (1990-2011)

%

3,43

8,98

12,93

14,9916,49

15,2114,29

11,49 9,9811,99

14,0116,23

19,7119,92

19,51

18,19

14,80

11,20

9,50

10,70

12,9013,10

0,00

5,00

10,00

15,00

20,00

25,00

4

5

Inflation 1991-2011

Źródło: GUS,

585,5

• Poles remember the anguish and long-term struggle with inflation.

• Poles know what the credibility is.

• We are proud what Poland has achieved, but we are also aware of the risks.

National debt/GDP

Źródło: GUS, 2012

Budget deficit/GDP

STATE OF PLAY

 a) Stable,b) Modern, c) Well-managed and well-supervised, but... backlogs are still enormous and difficult problems to solve.

We have the right to be proud of stability in economic policy and banking system which is:

Banks play a special role in the Polish economy.

Poland is still an underbanked country.

Polish financial system structure

Źródło: NBP

Open retirement fund

Stock-brokersInvest Funds

Insurance corporations

Banks

Number of Polish banks

Deposits of the nonfinancial sector in millions PLN

Źródło: NBP

100 597125 890

144 857 151 251 166 028182 737

204 995184 282

220 836239 361262 400

331 997379 671

425 917482 082

491 331

19,0% 19,8%

23,9%

28,2%30,4%

33,6% 34,5

30,4 29,6 29,3 29,226,7

0

5

10

15

20

25

30

35

40

0,0

100 000,0

200 000,0

300 000,0

400 000,0

500 000,0

600 000,0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 03/2012

Corporations House Holds Corporations/Non-financial sector

Austria

Belgium

Bulgaria

Cypru

s

Czech Rep

ublic

German

y

Denmark

Estonia

Spain

Finlan

dFra

nce UK

Greece

Hungary

Irelan

dIta

ly

Lithuan

ia

Luxe

mbourgLat

viaMalt

a

Netherl

ands

Poland

Portuga

l

Romania

Swed

en

Slove

nia

Slova

kia 10

100

1,000

DepositsNonMFI/GDP

Deposits to GDP in the EU in 2010 in %

A deficiency in domestic savings .

Too small part (only 4%) of

long-term savings.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 11/20110

100

200

300

400

500

600

700

800

900

Kredyty Depozyty

Credits to deposits

Credits for nonfinancial sector in billions of PLN

Źródło: NBP

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

800,0

900,0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 03/2012

117,9 120,4 116,0 119,1 136,5 171,2 216,0 212,0 204,0 238,9 242,086,1 98,1 109,6 136,0

182,9254,1

367,0

412,0477,5

534,0 526,0

9,2 10,7 11,0 11,914,7

15,8

16,0

25,0 33,2

38,936,0

Corporations house holds Local goverment units

Special Credits

• Technology• Ecology • Modernisation of Agriculture• Renewable energy

Number of active mortgage credits

Total value of mortgage credits lending in millions PLN

Austria

Belgium

Bulgaria

Cypru

s

Czech Rep

ublic

German

y

Denmark

Estonia

Spain

Finlan

dFra

nce UK

Greece

Hungary

Irelan

dIta

ly

Lithuan

ia

Luxe

mbourgLat

viaMalt

a

Netherl

ands

Poland

Portuga

l

Romania

Swed

en

Slove

nia

Slova

kia 10

100

1,000

10,000

Loans/GDP in %

Loans/GDP

A WELL-PREPARED AND EXPERIENCED POLISH BANKS PERSONNEL .

23

Employees

Źródło: KNF, 2011

OWN FUNDS IN THE BANKING SECTOR ARE BUILTCONSISTENTLY.

Own Funds in millions PLN

Źródło: NBP

3 394 5 257 7 66112 526

17 86122 468

25 76730 689

37 76940 558

40 56442 71946 587

51 234

61 765

74 346

88 423

100 598

110 876115 533

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 03/2012

Assets in billions PLN

Źródło: KNF, 2011r.

26

428 460 466 489539

587

681

801

1041 1060

1 159

1 295 1 302

0

200

400

600

800

1000

1200

1400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 03/2012

PL

N M

ld z

ł.

Austria

Belgium

Bulgaria

Cypru

s

Czech Rep

ublic

German

y

Denmark

Estonia

Spain

Finlan

dFra

nce UK

Greece

Hungary

Irelan

dIta

ly

Lithuan

ia

Luxe

mbourgLat

viaMalt

a

Netherl

ands

Poland

Portuga

l

Romania

Swed

en

Slove

nia

Slova

kia 10

100

1,000

10,000

Assets/GDP in %

Assets/GDP

A good quality loan portfolio

Good performance of the banking sector

Non-performing loans to loans in total

Źródło: NBP

STRUCTURE OF EVERYDAY PAYMENT (cash payments dominance)

Źródło: NBP

CASHCARDSPAYMENT ORDER

Card transactions value in millions PLN

Źródło: NBP

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.0

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

300,000.0

350,000.0

400,000.0

450,000.0

11,589.034,385.0

64,211.688,494.9

109,306.7130,067.4

156,671.9

187,246.8

218,939.5

265,158.9

304,289.4330,450.5

353,822.0

389,036.6

Payment cards in Poland

Internet banking

Źródło ZBP

Stable position of the National Bank of Poland.

A stable and strong position of the banking

supervision – Polish Financial Supervision

Authority.

Key elements of Polish banking infrastructure

Key elements of the Polish financial sector infrastructure

Banking market

• Bank Guarantee Fund• National Clearing House• Bureau of Credit

Information• Bereau of Economic

Information Infomonitor• The Polish Banking

Ombudsman • Effective system of

banking training and education

Capital market

• Warsaw Stock Exchange

• National Depository for Securieties

• CCP• Bondspot• Power Exchange

www.bik.pl 37

Bureau of Credit Information

38

Economic Data Office

Number of reports published by Economic Data Office in 2006-2011

National Clearing House

• Krajowa Izba Rozliczeniowa S.A. develops and markets innovative solutions pertaining to the exchange of electronic information. Such solutions have a significant influence on shaping and developing Polish e-economy. Products and services offered by KIR S.A. are targeted at banks and financial institutions, enterpreneurs, public administration, as well as at e-commerce operators and their clients.

• Products:– BILIX– PayByNet– ELIXIR– EuroELIXIR

The Bank Guarantee Fund

The Bank Guarantee Fund's mission is to work in favour of the safety and stability of banks and to increase confidence in the banking system.

The basic tasks of the Fund are:- to reimburse, up to the amount specified by the Act on the BGF, of funds

accumulated on bank accounts, in the event of the bankruptcy of a bank which is a participant in the deposit guarantee scheme,

- to provide financial assistance to banks which have found themselves faced with a loss of solvency and are engaging in independent reforms,

- to support processes involving the merger of endangered banks with strong bank entities,

- to collect and analyse information about entities covered by the guarantee system, including the preparation of analyses and forecasts concerning the banking sector.

THANK YOU

kontakt@zbp.pl www.zbp.pl