Poland's financial sector continues to be in good shape to perform well in the years ahead. Thecountry's strong macroeconomic backdrop will continue to provide the industry with strong tailwinds onaccount of solid load growth and foreign investor interest. Furthermore, the Polish government's decisionto drop its Swiss franc loan conversion plan earlier in 2017 eliminated a major downside risk to financialstability and will provide further tailwinds to growth for the banking sector by boosting credit supply.
Poland's financial sector has grown rapidly over the past years and is the largest in size in the Central andEastern European (CEE) region. The sector has benefited hugely from accession into the EU in 2004, froma regulatory and growth perspective. Poland was swift in implementing EU laws and regulations, makingthe market particularly attractive to foreign investors, compared to other non-EU emerging market peers. Inaddition, due to cheap valuations of Polish financial firms, foreign entities have bought up a large share ofPolish firms in this sector. This has brought in fresh capital and foreign expertise, boosting growth acrossPoland's financial services industry. The advantage of foreign ownership of Polish banks, insurers, and assetmanagement companies is that it brought in more sophisticated management and technology to mitigaterisk, while offering a primary source of funding in times of crisis.