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Economy and Banking Sector of Poland

Poland
Location
Central Europe
Population  (2017)
37 972 964  (0.00%)
EU Status
member since 2004
Currency
PLN (Polish złoty)
Nominal GDP (2016)
424.3 bln EUR  (-0.01%)
Credit Ratings (as of Sep 2016)
A-/A2
Consolidated Banking Assets (2016)
387.52 bln EUR  (+2.97%)
Deposit Guarantee
100 000 EUR
Number of Banks
654

Poland is a Central European country, a member of the European Union since 2004. Poland is a developed high-income economy, one of the most stable and prosperous of the post-Communist countries.

Poland is a regional economic leader of East-Central Europe, which successfully made its transition from a centrally planned to a primarily market-based economy. Poland has strong domestic market, low private debt, and flexible currency. Main industries of Polish economy are machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textiles.

Polish banking sector is dominated by foreign-controlled banks, with the presence of domestic commercial banks; there are also two domestic cooperative banking groups operating in Poland.

List of Banks in Poland

National Currency

Polish Złoty (PLN)

Exchange Rate

1 EUR = 4.2298 PLN (2017-10-17)

During the last 11 years EURPLN exchange rate was within the range 3.2063 - 4.7030, reaching its maximum in Feb 2009 and falling to its minimum in Jul 2008.

Euro to Polish złoty (EURPLN). Chart 1. Euro to Polish złoty (EURPLN). Source: ECB.

GDP

Nominal GDP (2016)Nominal GDP per Capita (2016)Real GDP Growth (2016)
424.3 bln EUR  (-0.01%)11 000 EUR  (-0.01%)2.7 %  (2015: 3.6 %)

According to Eurostat, nominal GDP of Poland in 2016 was 424.3 bln EUR.

Poland outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.4% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 2.7% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.

Real GDP Growth in Poland. Chart 2. Real GDP Growth in Poland. Source: Eurostat, International Monetary Fund.

In 2016, nominal GDP per capita in Poland was 11 000 EUR.

Poland has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -19.8% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Poland; European Union = 100. Chart 3. GDP Per Capita at Purchasing Power Parity in Poland; European Union = 100.

Inflation Rate

CPI, MoM (Jun 2017)CPI, YoY (Jun 2017)CPI, Year Average (2016)
-0.1 % (unchanged)1.3 %  (May 2017: 1.5 %)-0.2 %  (2015: -0.7 %)

According to Eurostat, inflation rate in Poland in 2016 expressed as annual percentages of average consumer prices was -0.2% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.

Inflation Rate in Poland. Chart 4. Inflation Rate in Poland. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2016)
6.2 %  (2015: 7.5 %)

Government Bond Yield

Government Bond Yield (Jun 2017)
3.19 %  (May 2017: 3.35 %)
According to Eurostat, government bond yield in Poland in Jun 2017 was 3.19%, compared to 3.35% in May 2017.
Government bond yield of Poland. Chart 5. Government bond yield of Poland. Source: Eurostat.

Credit Ratings (as of Sep 2016)

Fitch Moody's
A- (high credit quality), outlook stable A2 (upper medium grade), outlook negative

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Poland: 86 Signed Agreements

Poland signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Albania
 Armenia
 Australia
 Austria
 Azerbaijan
 Bangladesh
 Belarus
 Belgium
 Bosnia and Herzegovina
 Bulgaria
 Canada (Oct 2013)
 Chile
 China
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Egypt
 Estonia
 Finland
 France
 Georgia
 Germany
 Greece
 Hungary
 Iceland
 India
 Indonesia
 Iran, Islamic Republic of
 Ireland
 Israel
 Italy
 Japan
 Jersey
 Jordan
 Kazakhstan
 Korea, Republic of
 Kuwait
 Kyrgyzstan
 Latvia
 Lebanon
 Lithuania
 Luxembourg
 Macedonia
 Malaysia
 Malta
 Mexico
 Moldova, Republic of
 Mongolia
 Montenegro
 Morocco
 Netherlands
 New Zealand
 Norway
 Pakistan
 Philippines
 Portugal
 Qatar
 Romania
 Russian Federation
 Saudi Arabia
 Serbia
 Singapore (Feb 2014)
 Slovakia
 Slovenia
 South Africa
 Spain
 Sri Lanka
 Sweden
 Switzerland
 Syrian Arab Republic
 Tajikistan
 Thailand
 Tunisia
 Turkey
 Ukraine
 United Arab Emirates
 United Kingdom
 United States
 Uzbekistan
 Vietnam
 Zimbabwe

There are also several agreements between Poland and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):

 Malaysia (Jul 2013)
 Nigeria
 United States (Feb 2013)
 Zambia

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 14 Signed Agreements

Poland signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Andorra (Dec 2013)
 Guernsey
 Isle of Man
 Jersey
 San Marino (Feb 2013)

There are also several agreements between Poland and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):

 Bahamas (Jun 2013)
 Belize (May 2013)
 Bermuda (Nov 2013)
 British Virgin Islands (Nov 2013)
 Cayman Islands (Nov 2013)
 Dominica
 Gibraltar (Jan 2013)
 Grenada
 Liberia (Aug 2013)

Automatic Exchange: Starts in September 2017

Poland signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Poland
IGA in effect since 07 October 2014, Model 1

Poland has FATCA agreement with the U.S. in effect since 07 October 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Poland are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Polish financial accounts hold in U.S. financial institutions will be reported to Polish authorities.

Further Information

Financial Market Development

Financial Market Development
4.2 (max 7.0), 46th out of 138 countries
Banks' Soundness
5.4 (max 7.0), 49th out of 138 countries

According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Poland is scored 4.2 out of maximum 7.0 and ranked 46th out of 138 analysed economies. Soundness of banks is scored 5.4 bringing Poland into the 49th place, trustworthiness and confidence of financial market is scored 4.6 (44th place).

Financial Market Development in Poland. Chart 6. Financial Market Development in Poland. Source: WEF.

Deposit Guarantee Scheme

Maximum Protected Amount
100 000 EUR

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Poland are summarised in Table 1.

Scheme Participantsall credit institutions operating in Poland, branches of non-EU banks, branches of Polish banks abroad
Scheme Exemptionsbranches of EU-banks (covered by their home countries)
Eligible Depositorsnatural persons, legal entities
Covered Accountsdeposits in all the accounts (e.g. term deposits, current accounts, savings accounts)
Covered Currenciesall
Maximum Protected Amount100 000 EUR
Paid In CurrencyPLN

Table 1. Deposit guarantee scheme in Poland.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Polish złoty) Foreign Currency
Aa3 (high grade) A2 (upper medium grade)

Local currency (Polish złoty) deposit ceiling for Poland is set to Aa3 (high grade), foreign currency deposit ceiling is A2 (upper medium grade).

Deposit Rates

Average Deposit Rate (May 2017, PLN)
1.40 %  (Apr 2017: 1.43 %)
In May 2017, an agreed annualised deposit rate in local currency (Polish złoty) of new contracts with agreed maturity up to 1 year between credit institutions and households was 1.40% .
Deposit Rates in Poland. Chart 7. Deposit Rates in Poland. Source: ECB.

Further Information

Banking Sector Structure

Number of Banks
654
Consolidated Assets (2016)
387.52 bln EUR  (+2.97%)
Recent Changes (2016)
new banks: 0, closed banks: 4

Currently there are 654 credit institutions operating in Poland.

In 2016 consolidated banking assets in Poland were 387.52 bln EUR. The consolidated banking assets' evolution is shown at Chart 8 below.

Consolidated banking assets in Poland. Chart 8. Consolidated banking assets in Poland.

Recent structural changes (2013 - 2016) of the banking sector of Poland are summarised in Table 2.

2013201420152016
Number of Opened Banks3010
Number of Closed Banks411104

Table 2. Recent structural changes in the banking sector of Poland.

The list of the most recently opened banks in Poland is provided in Table 3.

All the credit institutions operating in Poland can be classified into several categories. Table 4 summarises the number of banks in each category.

CategoryNumber of Banks
Banks36
Branches of foreign banks23
Central banks1
Cooperative banks556
Credit unions38

Table 4. Number of banks by category in Poland.

There are 23 branches of foreign banks from 13 different countries in Poland. Table 5 shows 10 countries having the biggest number of branches in Poland.

Country of OriginNumber of Branches
 Sweden4
 France4
 Luxembourg3
 Ireland2
 Denmark2
 Spain1
 United Kingdom1
 Italy1
 Austria1
 Germany1

Table 5. Number of branches of foreign banks in Poland grouped by country of origin.

Current Accounts

Minimal Annual Costs
0.00 PLN
Maximum Annual Costs
96.00 PLN
13 offers from 12 banks

Time Deposit Accounts

Minimal Interest Rate
0.50 %
Maximum Interest Rate
1.05 %
15 offers from 2 banks

Consumer Loans

Minimal Effective Rate
5.12 %
Maximum Effective Rate
5.12 %
11 offers from 1 banks