CHANGES IN THE POLISH BANKING SYSTEM AFTER 1989

Abstract

After 1989, the Polish banking system underwent a number of changes relating to, among other things, liberalization, globalization and deregulation. These changes contributed to the formation of a two-tier system characteristic of a market economy. In this system, the central bank is the bank of banks as well as the state bank. It maintains financial stability and thus controls the activities of commercial banks. Following the political transformation, commercial banks became self-governing for-profit institutions. Ever since 1989, this sector has been characterized by a number of changes related to the process of consolidation. Foreign capital, the need for alignment with EU requirements, technological and legal change have led to weaker banks being taken over by stronger ones.

Keywords

• banking system
• banking sector
• bank
• central bank
• consolidation
• two-tier system