Financial System Development in Poland 2002–2003 Warsaw, December 2004 Editors: Jacek Osiƒski Pawe∏ Wyczaƒski Dobies∏aw Tymoczko Agnieszka Gràt Authors: Miros∏aw Dusza Agnieszka Gràt Monika Józefowska Pawe∏ K∏osiewicz Daniel Kosicki Piotr Lutostaƒski Przemys∏aw Paprotny Ma∏gorzata Paw∏owska Aleksandra Pilecka Jerzy Ploch Miros∏awa Rutkowska Anna S∏awiƒska Pawe∏ Sobolewski Aleksandra Wytwer Translation: BTInfo Biuro T∏umaczeƒ Informatycznych Design & cover photo: Oliwka s.c. Print & Pre-print: Drukarnia NBP Published: National Bank of Poland Department of Information and Public Relations 00-919 Warszawa, Âwi´tokrzyska Street 11/21 Telefon (48 22) 653 23 35 Fax (48 22) 653 13 21 www.nbp.pl, www.nbportal.pl © Copyright by National Bank of Poland, 2005 Table of contents Summary . 5 Introduction . 9 1. Financial system of a market economy . .11 1.1. The role of the financial system in economy . 11 1.2. Financial system models . 12 2. Financial system in Poland . 17 2.1. Evolution of the size and structure of the financial system in Poland . 17 2.2. Comparison of the development level of financial systems in Poland and in other countries . 21 3. Regulations . 25 3.1. Introduction to the regulatory system . 25 3.2. Regulations influencing the financial services sector . 25 3.3. Regulations regarding the sector of banking and quasi-banking services . 29 3.4. Regulations regarding non-bank financial institutions . 31 3.5. Regulations regarding the capital market . 32 4. System infrastructure . 35 4.1. Regulatory and supervisory institutions . 35 4.2. Payment system . 38 4.2.1. Large-value interbank settlements . 38 4.2.2. Retail payment systems . 39 4.3. Securities market infrastructure . .41 4.4. Market participants protection systems . 45 4.5. Institutions that improve information transparency — business information offices and rating agencies . 48 4.6. Interbank intermediaries — brokers . 50 5. Financial institutions . 51 5.1. Banks . 51 5.1.1. Evolution of the size and structure of the banking sector . 51 5.1.2. Movements in bank assets and liabilities structure . 54 5.1.3. Movements in the structure of claims and liabilities towards the non-financial sector . 56 5.1.4. Banking sector performance and efficiency . 67 5.1.5. Consolidation and concentration of the commercial banking sector . 69 5.1.6. Novelties in the offering . 72 5.1.7. Expanding the distribution channels . 79 5.1.8. Outlook for the future . 82 5.2. Quasi-bank institutions and non-bank institutions providing financial services . 89 5.2.1. Credit Unions . 89 5.2.2. Non-bank institutions providing financial services . 91 5.2.3. High risk capital sector (private equity/venture capital) . 97 5.3. Collective investment institutions . 102 5.3.1. Evolution of the size and structure of the collective investment institutions sector . 102 5.3.2. Asset structure . 109 5.3.3. Investment performance . 113 5.3.4. Product novelties . 115 5.3.5. Prospects . 115 5.4. Insurance companies . 118 5.4.1. Evolution of the size of the insurance sector . 118 5.4.2. Concentration . 123 5.4.3. Distribution channels . 124 5.4.4. Product offer . 124 5.4.5. Perspectives . 125 3 5.5. Brokerage houses and offices . 127 5.5.1. Evolution of the size and structure of the sector of brokerage activity . 127 5.5.2. Distribution channels . 130 5.5.3. Market perspectives . 130 6. Financial markets . 131 6.1. Money market . 131 6.1.1. Evolution of money market size and structure . 131 6.1.2. Negotiable short-term debt securities market . 131 6.1.3. Deposit transaction market . 146 6.2. Capital market . 160 6.2.1. Evolution of capital market size and structure . 160 6.2.2. Negotiable long-term debt securities market . 160 6.2.3. Negotiable equities market — stocks . 181 6.3. Spot FX market . 190 6.4. Derivatives market . 195 6.4.1. OTC derivatives . 196 6.4.2. Stock exchange derivatives . 213 MONOGRAPHIC STUDIES Monika Józefowska Commercial Banks’ Policy towards Small and Medium-Sized Enterprises 1. Introduction . 232 2. Overall survey characteristics . 232 3. Classification and support of SME customers . 233 3.1. Banking service packages . 234 3.2. Separate organisational unit . 234 3.3. Procedures concerning the provision of services to small and medium-sized enterprises . 235 4. Obstacles and factor risk accompanying the financing of SMEs . 236 4.1. Lending amount and purpose . 236 4.2. Loan parameters . 236 4.3. Advantages and preferred types of security . 237 4.4. Reasons for refusals to grant a loan . 238 4.5. Obstacles in.