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.
1 EUR = 4.202 PLN (2017-12-08)
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.
Chart 1. Euro to Polish złoty (EURPLN). Source: ECB.
|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 1.2% 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.
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 -25.7% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.
Chart 3. GDP Per Capita at Purchasing Power Parity in Poland; European Union = 100.
|CPI, MoM (Sep 2017)||CPI, YoY (Sep 2017)||CPI, Year Average (2016)|
|0.2 % (Aug 2017: -0.2 %)||1.6 % (Aug 2017: 1.4 %)||-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.
Chart 4. Inflation Rate in Poland. Source: Eurostat, International Monetary Fund.
|Unemployment Rate (2016)|
|6.2 % (2015: 7.5 %)|
|Government Bond Yield (Sep 2017)|
|3.26 % (Aug 2017: 3.33 %)|
Chart 5. Government bond yield of Poland. Source: Eurostat.
|A- (high credit quality), outlook stable||A2 (upper medium grade), outlook negative|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Poland signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
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 1 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
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.
Poland signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Poland and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):
Poland signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Poland has signed bilateral agreements with 57 jurisdictions to automatically receive information:
Poland has signed bilateral agreements with 69 jurisdictions to automatically send information:
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.
|Financial Market Development|
|4.2 (max 7.0), 53rd out of 138 countries|
|5.4 (max 7.0), 50th out of 138 countries|
According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Poland is scored 4.2 out of maximum 7.0 and ranked 53rd out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.5 (53rd place).
Chart 6. Financial Market Development in Poland. Source: WEF.
Soundness of banks is scored 5.4 bringing Poland into the 50th place.
Chart 7. Soundness of Banks in Poland. Source: WEF.
|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:
All these details about deposit guarantee scheme in Poland are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Poland, branches of non-EU banks, branches of Polish banks abroad|
|Scheme Exemptions||branches of EU-banks (covered by their home countries)|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||deposits in all the accounts (e.g. term deposits, current accounts, savings accounts)|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||PLN|
Table 1. Deposit guarantee scheme in Poland.
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).
|Average Deposit Rate (Aug 2017, PLN)|
|1.48 % (Jul 2017: 1.44 %)|
Chart 8. Deposit Rates in Poland. Source: ECB.
|Number of Banks|
|Consolidated Assets (2016)|
|387.52 bln EUR (+2.97%)|
|Recent Changes (2016)|
|new banks: 0, closed banks: 4|
Currently there are 652 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 9 below.
Chart 9. Consolidated banking assets in Poland.
Recent structural changes (2013 - 2016) of the banking sector of Poland are summarised in Table 2.
|Number of Opened Banks||3||0||1||0|
|Number of Closed Banks||4||11||10||4|
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.
|PKO Bank Hipoteczny S.A. (new)||May 2015|
|DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main Spółka Akcyjna Oddział w Polsce (closed)||November 2013|
|Western Union International Bank GmbH, Sp. z o.o. Oddział w Polsce (new)||September 2013|
|Intesa Sanpaolo S.p.A. Spółka Akcyjna Oddział w Polsce (new)||March 2013|
Table 3. The most recently opened banks in Poland.
All the credit institutions operating in Poland can be classified into several categories. Table 4 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||23|
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 Origin||Number of Branches|
|1||PKO Bank Polski|
|2||Bank Pekao (UniCredit)|
|4||ING Bank Śląski S.A.|
|5||Bank Zachodni WBK (Santander)|
|7||Bank Millennium (BC Portugues)|