Polish financial system's most significant weakness remains risk of FX loan portfolio
The most significant weakness in the Polish financial system remains the risk associated with the foreign currency mortgage loan portfolio, according to Poland's macroprudential body KSF-M in a statement following its regular meeting.
"The body's members discussed the sources of risk in the Polish financial system and its environment. The synthetic risk assessment indicator rose slightly compared to the previous quarter due to the addition of a new vulnerability to the list – free credit sanctions. The number of vulnerabilities remained unchanged, as the risk of weakness of certain institutions and spillover effects were removed from the list at the same time," the statement said.
"The most significant weak point in the Polish financial system remains the risk associated with the portfolio of foreign currency housing loans. The next places in the hierarchy of weak points are occupied by: geopolitical risk, the risk of WIBOR being challenged, free credit sanctions and risk in the residential real estate market," it added.
pat/ han/
