Consolidation of the Banking Sector in Poland in 1989-2013 in Comparison with the Structural Changes of the Banking Sector in the USA and the EU

Abstract

Consolidation of the Polish banking sector was greatly associated with development and expansion of the banking sectors of EU countries and followed some consolidation patterns used by US banks. Deregulation of 1989 contributed to creation of a large group of small private banks and paved the way to privatization of the state-owned banks comprising majority of the market. In the 1990s consolidation resulted mostly from takeovers of insolvent newly created banks and had a limited impact on the banking sector.At the turn of the 1990s and the 2000s, after completion of privatization, large banks controlled by the same foreign investors merged within their capital groups and harmonized operations in one entity, frequently after changing names for parent bank names. This process impacted market concentration the most.Poland`s entrance to EU resulted in cross-border consolidation relied on taking over subsidiaries by branches of their parent banks in Poland. Developments of the EU banking sector significantly contributed to mergers and acquisitions of Polish banks. Takeovers of parent banks resulted in immediate mergers of their subsidiaries, and the post-crisis recovery process resulted in a forced sale-out their subsidiaries, creating opportunities for consolidation and market expansion of some Polish medium-sized banks.

Performance changes around banks mergers and acquisitions: evidence from Poland

“…Since 2010 the consolidation activities of banks have intensified, which restored the upward trend in the level of concentration of the Polish banking sector [Kozak 2013] (Figure 1).…”

“…The communist government determined interest rates by administrative decisions and the size and priorities of the banks' lending activities were recorded in the annual credit and cash plan. The National Bank of Poland (NBP) was the major element of the banking system and combined the functions of a commercial bank and a central bank [Kokoszczyński 2001;Kozak 2013].…”

La crisis de la banca europea. El caso particular del sistema bancario polaco

“…El presente trabajo analiza cómo se ha comportado su sector bancario en un entorno tan complejo como el actual, y especialmente teniendo en cuenta que el país cuenta con su propia moneda, el zloty 8 , y que por el momento no se atisba su incorporación inmediata al euro. Hay que tener en cuenta que su sector bancario es el más importante de todos los de los países del Este que conforman la Unión Europea y en el que los bancos de otros países europeos ocupan un papel mayoritario.…”

“…En el año 2012 el BERD firmó un total de 21 proyectos por un valor de 891 millones de euros 7. En el año 2013 el 23 por 100de los fondos del BEI fueron a parar a Polonia 8. El zloty tenía una cotización, a 31 de octubre del año 2014, de 4,212 zlotys por euro.…”

Financialisation as a Result of the Network Economy’s Development

“…The global, network aspect of fi nancialisa� on can be seen in the transforma� on of the economy and social life made by a wave of mergers and acquisi� ons from large Western European banks (Raviv, 2007). They signifi cantly impacted the performance and structure of the en� re banking sector (Kozak, 2013). As a result, a considerable amount of Polish banks' equity (63,2%) is controlled by foreign investors (Klimontowicz, 2015).…”