Financial System Development in Poland 2005 Warsaw, 2007 Editors Jacek Osiƒski Dobies∏aw Tymoczko Authors Agnieszka Brewka Monika Józefowska Pawe∏ K∏osiewicz Jolanta Onoszko Aleksandra Pilecka Jerzy Ploch Rafa∏ Sieradzki Pawe∏ Sobolewski Andrzej Wojciechowski Jolanta Wojtaszek Robert Wyszyƒski Aleksandra Wytwer Design & Cover photo Oliwka s.c. DTP: NBP Printshop Published by: National Bank of Poland Department of Information and Public Relations 00-919 Warszawa, ul. Âwi´tokrzyska 11/21 Phone (48) 22 653 23 35 Fax (48) 22 653 13 21 www.nbp.pl, www.nbportal.pl © Copyright by the National Bank of Poland, 2007 Table of contents Summary . 5 Introduction . 12 1. The financial system in Poland . 13 1.1. Evolution of the size and structure of the financial system in Poland . 13 1.2. Measures stimulating financial market development in Poland . 16 2. Regulations of the financial system . 19 2.1. Changes of the regulations of the financial system in Poland . 19 2.1.1. Regulations regarding the entire financial services sector . 20 2.1.2. Regulations regarding the banking services sector . 20 2.1.3. Regulations regarding non-banking financial institutions . 22 2.1.4. Regulations regarding the capital market . 24 2.2. Measures of the European Union regarding the financial system . 27 2.2.1. Financial Services Action Plan (FSAP) . 27 2.2.2. Directives regarding the financial sector . 31 2.2.2.1. Directives regarding the entire financial services sector . 34 2.2.2.2. Directives regarding the banking services sector . 35 2.2.2.3. Directives regarding non-banking financial institutions . 36 2.2.2.4. Directives regarding the capital market . 37 2.2.3. Green and White Papers regarding financial services . 38 2.2.4. Prospects of regulatory changes . 43 3. System infrastructure . 45 3.1. Regulatory and supervisory institutions . 45 3.2. Payment system . .46 3.2.1. Large value interbank settlements . 46 3.2.2. Retail payment systems . 49 3.3. Financial instruments market infrastructure . 53 3.4. Market participant protection systems . 58 3.5. Institutions that enhance information transparency . 58 4. Financial institutions . 60 4.1. Banks . 60 4.1.1. Evolution of the banking sector: size and structure . 60 4.1.2. Changes in the structure of bank assets and liabilities . 65 4.1.3. Changes in the structure of claims and liabilities to non-finacial customers . 68 4.1.3.1. Claims on non-financial customers . 69 4.1.3.2. Liabilities to non-financial customers . 79 4.1.4. Banking sector earnings and performance . 82 4.1.5. Consolidation and concentration of the banking sector . 86 4.1.6. Changes in the banks’ product offer . 89 4.1.7. Prospects . 95 4.2. Credit unions . 102 4.3. Non-banking institutions providing financial services . 106 4.3.1. Leasing . 106 4.3.2. Factoring . 109 4.3.3. Loan and financial brokers . 111 4.4. Private equity/venture capital sector . 116 4.5. Collective investment institutions . 121 4.5.1. Investment funds . 121 3 4.5.2. Pension funds . 132 4.5.3. Collective investment institutions and financial markets . 139 4.5.4. Occupational Pension Programs and Individual Pension Accounts . 141 4.6. Insurance companies . 143 4.6.1. Size and structure of the insurance sector . 143 4.6.2. Insurance companies assets . 151 4.6.3. Insurance sector financial results . 154 4.6.4. Selected ratios and indicators of insurance activities . 156 4.6.5. Reinsurance . 157 4.6.6. Product offer . 158 4.6.7. Distribution channels . 161 4.6.8. Prospects . 161 4.7. Entities conducting brokerage activities . 163 4.7.1. Evolution of the size and structure of the sector . 163 4.7.2. Financial results . 165 4.7.3. Brokerage services market . 165 4.7.4. Prospects . 166 5. Financial markets . 168 5.1. Money market . 168 5.1.1. Evolution of the money market size and structure . 168 5.1.2. Marketable short-term debt securities market . 168 5.1.2.1. Treasury bills . 168 5.1.2.2. NBP bills . 173 5.1.2.3. Short-term commercial bank debt securities . 177 5.1.2.4. Short-term corporate bonds . 180 5.1.3. Deposit transaction market . 186 5.1.3.1. Unsecured deposits . 187 5.1.3.2. Secured deposits . 192 5.1.3.2.1. FX swaps . 192 5.1.3.2.2. Conditional transactions . 196 5.2. Capital market . ..