Financial System Development in Poland 2010 Warsaw, 2012 Editors: Paweł Sobolewski Dobiesław Tymoczko Authors: Katarzyna Bień Jolanta Fijałkowska Marzena Imielska Ewelina Jaskólska Piotr Kasprzak Paweł Kłosiewicz Michał Konopczak Sylwester Kozak Dariusz Lewandowski Krzysztof Maliszewski Rafał Nowak Dorota Okseniuk Aleksandra Paterek Aleksandra Pilecka Rafał Sieradzki Karol Siskind Paweł Sobolewski Andrzej Sowiński Mikołaj Stępniewski Michał Wiernicki Andrzej Wojciechowski Design, cover photo: Oliwka s.c. DTP: Print Office NBP Published by: National Bank of Poland Education and Publishing Department 00-919 Warsaw, Świętokrzyska 11/21, Poland Phone 48 22 653 23 35 Fax 48 22 653 13 21 www.nbp.pl © Copyright by National Bank of Poland, 2012 Introduction Table of contents Introduction . 5 1 . Financial system in Poland . 6 1.1. Evolution of the size and structure of the financial system in Poland . .6 1.2. Households and enterprises on the financial market in Poland .........................14 1.2.1. Financial assets of households ...............................................14 1.2.2. External sources of financing of Polish enterprises ................................18 2 . Regulations of the financial system . 21 2.1. Changes in financial system regulations in Poland ..................................21 2.1.1. Regulations affecting the entire financial services sector ...........................23 2.1.2. Regulations regarding the banking services sector ................................26 2.1.3. Regulations regarding non-bank financial institutions .............................32 2.1.4. Regulations regarding the capital market ......................................33 2.2. Measures of the European Union regarding the regulation of the financial services sector ....34 2.2.1. Regulations affecting the entire financial services sector ...........................34 2.2.2. Regulations regarding the banking services sector ................................39 2.2.3. Regulations regarding the capital market ......................................40 2.2.4. Planned measures of the European Union regarding regulation of the financial services sector ...............................................42 3 . System infrastructure . 47 3.1. Regulatory and supervisory institutions ...........................................47 3.2. Payment system ............................................................47 3.2.1. Large-value interbank settlements ...........................................47 3.2.2. Retail payment systems ....................................................50 3.2.3. Financial intermediation agencies ............................................52 3.2.4. Cash back service ........................................................53 3.3. Financial instruments market infrastructure .......................................53 3.4. European projects on the financial market infrastructure .............................59 3.5. Market participant protection systems ...........................................62 3.6. Institutions that enhance information transparency .................................63 4 . Financial institutions . 65 4.1. Banks ....................................................................65 4.1.1. Evolution of the banking sector: size and structure ...............................66 4.1.2. Concentration and competition in the banking sector .............................73 4.1.3. Changes in the structure of bank assets .......................................74 4.1.4. Changes in the structure of bank liabilities .....................................86 4.1.5. Changes in banks’ product offer .............................................92 4.1.6. Earnings of the banking sector ..............................................93 4.2. Credit unions ..............................................................97 4.3. Non-bank institutions providing financial services ..................................100 4.3.1. Leasing ...............................................................100 4.3.2. Factoring .............................................................105 4.3.3. Financial intermediation ..................................................107 4.4. Private equity/venture capital sector ............................................110 4.5. Collective investment schemes ................................................114 4.5.1. Investment funds .......................................................114 FINANCIAL SySTEM DEVELOPMENT IN POLAND 2010 3 Wstęp 4.5.2. Open pension funds .....................................................126 4.5.3. Occupational pension schemes and individual pension accounts ....................138 4.6. Insurance companies .......................................................143 4.6.1. The size and structure of the insurance sector ..................................143 4.6.2. Premium structure ......................................................147 4.6.3. Assets and investment portfolio of insurance companies ..........................148 4.6.4. Financial results of the insurance sector ......................................150 4.6.5. Solvency and capital adequacy .............................................151 4.6.6. Selected technical ratios ..................................................152 4.6.7. Product structure and distribution channels . .153 4.7. Entities conducting brokerage activities .........................................155 4.7.1. Conditions for the operation of entities conducting brokerage activities in the Polish market .....................................................155 4.7.2. Brokerage services market .................................................156 4.7.3. Activities of brokerage entities in an organised market ...........................158 4.7.4. Financial results ........................................................161 5 . Financial markets . 162 5.1. Money market ............................................................162 5.1.1. Evolution of the money market: size and structure ..............................162 5.1.2. Short-term debt securities market ...........................................163 5.1.2.1. Treasury bills ........................................................163 5.1.2.2. NBP bills ...........................................................168 5.1.2.3. Short-term bank debt securities ..........................................171 5.1.2.4. Short-term corporate bonds ............................................173 5.1.3. Deposit transactions market ...............................................175 5.1.3.1. Unsecured deposits ...................................................178 5.1.3.2. Secured deposits .....................................................181 5.1.3.2.1. FX swaps ........................................................182 5.1.3.2.2. Conditional transactions .............................................186 5.2. Capital market ............................................................190 5.2.1. Evolution of the capital market: size and structure ..............................190 5.2.2. Long-term debt securities market ...........................................192 5.2.2.1. Treasury bonds ......................................................192 5.2.2.2. Municipal bonds .....................................................203 5.2.2.3. Long-term debt instruments issued by banks ................................208 5.2.2.3.1. Long-term bank debt securities .......................................208 5.2.2.3.2. Mortgage bonds ..................................................211 5.2.2.4. Corporate bonds .....................................................213 5.2.3. Equity market ..........................................................216 5.2.3.1. Shares traded in the WSE Main Market ....................................217 5.2.3.2. Other equities listed on the WSE Main Market – allotment certificates and subscription rights ................................................225 5.2.3.3. Equity market on the NewConnect platform ................................226 5.3. Spot FX market ...........................................................229 5.4. Derivatives market .........................................................238 5.4.1. Evolution of the derivatives market: size and structure ...........................239 5.4.2. OTC derivatives .........................................................241 5.4.2.1. Interest rate derivatives ................................................243 5.4.2.2. FX derivatives .......................................................248 5.4.3. Exchange-traded derivatives ...............................................255 5.4.3.1. Equity derivatives .....................................................256 5.4.3.2. FX derivatives .......................................................260 Abbreviations used in the report . 264 4 National Bank of Poland Introduction Introduction The Financial System Development in Poland 2010 is a new edition of the report which describes changes in the financial system in a given year. This publication presents trends for and the barriers to the development of all financial institutions and financial markets operating in Poland in relation to changes in the architecture of the European financial system and an escalating debt crisis of some euro area countries. The analysis examines changes in infrastructure and regulations relating to the financial system as well as initiatives aimed at integrating the financial market in the European Union and enhancing its security.