WARSAW--Poland's banking sector is better prepared to cope with
tougher challenges in 2013 and 2014 due to a consistent regulatory
push to shore up lenders' capitals, the Polish central bank said
Tuesday.
The outlook for next two years for the banking sector has
significantly deteriorated due to deeper-than-expected recession in
the euro zone and the slowing of the Polish economy, which means
lower earnings, sales and higher costs of risk for banks in the
coming years, Piotr Szpunar, head of financial system department at
the central bank, said.
"Overall outlook for the sector's stability slightly
deteriorated entirely due to international factors," Mr. Szpunar
said, presenting the central bank's latest financial stability
survey. "Domestically we are doing our part to prepare for risks
lying ahead."
Because of restrictions on dividend payouts put in place by
financial regulator KNF the banking sector significantly improved
its resistance to potential shocks since the latest survey was
conducted, Mr. Szpunar added.
Write to Patryk Wasilewski at patryk.wasilewski@dowjones.com