30 Jan 2024
Financial sector, mBank – CASE Seminar Proceedings

The Polish Economy 2023 and Beyond: How to Mend Home Loans

The subject of this publication, reflecting the discussion held between experts on 30 March 2023, is that of housing loans in Poland. The publication focuses primarily on discussing the state of mortgages (at the end of the first quarter of 2023). This state is the effect of (a) legislation, (b) institutional solutions, (c) past processes in the financing of housing loans, and recently also (d) the high level of inflation dampening both lending by the banks and the level of interest among bank customers. The publication's second purpose is to present recommendations which, once put into effect, could rectify today’s lamentable situation.

All of the proposals presented in this publication lead to one general recommendation: the answer to the current shortcomings lies not in isolated, single changes; what is essential is a new system for the market. This new system should be (a) flexible, (b) free of legal risk while at the same time (c) better protected against market risk, and (d) it should also contain a more comprehensive range of products; on this market (e) the state, as the regulator, should intervene ex-ante and not only ex-post (as has been the case in Poland for the last 20 years), while (f) customers should have the essential minimum of financial knowledge, first and foremost regarding awareness of the risk related to, which by their very nature are long-term loans.

Table of Contents

Ewa Balcerowicz - Introduction p. 5-9

Dariusz Filar - Chapter 1: Can the banks be counted on for financing home purchases: the state of the sector and lessons from the years 2004–2023 p. 10-22

Andrzej Reich - Chapter 2: What should the new model for the home loans market be like? p. 23-34

Michał Polasik - Chapter 3: Balanced Mortgage – a response to current challenges faced by the Polish economy p. 35-53

Appendix p. 54


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