The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Leading from the front

It was fun while it lasted but National Bank of Poland's unique approach to monetary control has been knocked on the head. Following this year's introduction of a new banking law, the central bank, headed by tough-minded Hanna Gronkiewicz-Waltz, will no longer be able to take retail deposits.

That also means an end to glitzy marketing campaigns extolling the benefits of good returns without risk that the central bank had offered. Deposit rates 3% above the average pulled in $1 billion in deposits before the scheme was halted.

With or without further retail adventures, Poland's commercial bankers are taking the central bank more seriously than before. Its worry was that credit growth was outstripping deposit growth paving the way for liquidity problems. All the standard measures had been tried such as raising interest rates and reserve requirements. The only thing left was to prod the banks into submission by stealing their business. This soon had the banks sacrificing spreads and building up deposits.

Had Asian central banks pursued similarly tough policies, the current crisis might never have started. Ambitious headhunters could earn a large fee by relocating Gronkiewicz-Waltz to Thailand, Indonesia or South Korea.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree