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.
|Population (2016)||37 967 209 (0.00%)|
|EU Status||member since 2004|
|National Currency||PLN (Polish złoty)|
|Exchange Rate (2017-02-17)||1 EUR = 4.3305 PLN|
|Nominal GDP (2015)||427.8 bln EUR (+0.03%)|
|Nominal GDP per Capita (2015)||11 100 EUR (+0.04%)|
|Real GDP Growth (2015)||3.6 % (2014: 3.3 %)|
|CPI, MoM (Dec 2016)||0.5 % (Nov 2016: 0.0 %)|
|CPI, YoY (Dec 2016)||0.9 % (Nov 2016: 0.2 %)|
|CPI, Year Average (2016)||-0.2 % (2015: -0.7 %)|
|Unemployment Rate (2015)||7.5 % (2014: 9.0 %)|
|Government Bond Yield (Dec 2016)||3.54 % (Nov 2016: 3.41 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||A-||high credit quality, outlook stable|
|Moody's||A2||upper medium grade, outlook negative|
|S&P||BBB+||lower medium grade|
|Double Taxation Agreements||86 signed agreements|
|Exchange on Request||14 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA in effect since 07 October 2014, Model 1|
|Financial Market Development||4.2 (max 7.0)||rank: 46th out of 138 countries|
|Banks' Soundness||5.4 (max 7.0)||rank: 49th out of 138 countries|
|Banking Industry Country Risk||5||(1 - lowest risk, 10 - highest risk)|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Country Ceiling for Deposits|
|Local Currency (Polish złoty)||Aa3||high grade|
|Foreign Currency||A2||upper medium grade|
|Deposit Rates (Nov 2016, PLN)||1.57 % (Oct 2016: 1.64 %)|
|Banking Sector Structure|
|Number of Banks||668|
|Recent Changes (2016)||new banks: 0, closed banks: 4|
|Consolidated Assets (2015)||376.36 bln EUR (+4.32%)|
|PKO Bank Polski||Bank Zachodni WBK (Santander)|
|Bank Pekao (UniCredit)||Raiffeisen Polbank|
|mBank (Commerzbank)||Bank Millennium (BC Portugues)|
|List of Banks in Poland|
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.
According to Eurostat, nominal GDP of Poland in 2015 was 427.8 bln EUR.
Poland outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.6% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 3.6% which was above the Euro Area average (1.6%) and above the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2015, nominal GDP per capita in Poland was 11 100 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 -25.4% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.
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 - 2021 are IMF's estimates.
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 01 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 01 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.
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):
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):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Poland signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
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).
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.
FATCA and European 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).
Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.
Poland is included into group '5' with economic risk scored '5' and industry risk scored '6'.
|Credit risk in economy||high|
|Government support assessment||supportive|
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 2.
|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 2. Deposit guarantee scheme in Poland.
Deposit Guarantee Schemes in Europe
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) deposit ceiling for Poland is set to Aa3 (high grade), foreign currency deposit ceiling is A2 (upper medium grade).
Compare Bank Deposits in Poland
Currently there are 668 credit institutions operating in Poland.
Recent structural changes (2013 - 2016) of the banking sector of Poland are summarised in Table 3.
|Number of Opened Banks||3||0||1||0|
|Number of Closed Banks||4||11||10||4|
Table 3. Recent structural changes in the banking sector of 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||20|
The list of the most recently opened banks in Poland is provided in Table 5.
|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 5. The most recently opened banks in Poland.
There are 21 branches of foreign banks from 11 different countries in Poland. Table 6 shows 10 countries having the biggest number of branches in Poland.
|Country of Origin||Number of Branches|