Banking expert: situation of Polish system ‘complicated’

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During the European Economic Congress, the chairman of Deutsche Bank Poland said that “certain negative effects cumulate in the Polish banking sector”.

On the second day of the EEC – which kicked off on Monday – the chairman of Deutsche Bank Poland, Krzysztof Kalicki, spoke about “regulations, reporting, analyses, risk and operational management” stating that that is where “many expenses of the banking sector cumulate”.

Another aspect that vexes the banking sector are large government charges. The chairman said that “the sector pays banking tax of approximately PLN 3.5 bln.”

“And as if that wasn’t enough, banks pay [additional] income tax on that banking tax – in other words – on something that is by no means their income, but a financial burden,” Mr Kalicki said, adding that “the same goes for the bank guarantee fund on which banks are obliged to pay income tax as well. Put differently, the income tax is paid on costs and that is an anomaly from the economic point of view.”

What is worse, “capital requirements appreciate, while the problem of banks’ capital equipment and financing increases.” It is on these factors that further crediting and credit growth depends.

“On one hand, we are witnessing a tightening of credit requirements – something that results indirectly from slowly growing capitals. If the banks suffer such government charges, it is no wonder that the capitals grow slowly,” explained the chairman.

The EEC is the largest of event of this type in the Central Europe. Its organizers estimate the number of this year edition’s participants for about nine thousand including eminent politicians and seasoned businessmen.