160th mBank-CASE Seminar Proceedings: Financing for the Polish economy: prospects and threats

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25 Jun 2019

Trade & Macro

mBank – CASE Seminar Proceedings

Andrzej Halesiak

Ernest Pytlarczyk

Stefan Kawalec

Mariusz Więckowski

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Andrzej Halesiak
Articles from this author:
- 165th mBank – CASE Seminar Proceedings: Is the economy doomed to a long recession?
  Forecasting during a strong shock is burdened with exceptionally high uncertainty. This gives rise to the temptation to formulate alarmist forecasts. Experiences from earlier pandemics, particularly those from the 20th century, for which we have the most data, don’t provide a basis for this. The mildest of them weakened growth by less than 1 percentage … Continued
- 144th mBank-CASE Seminar Proceedings: On Economic Growth in Europe, or, The Uncertain Growth Prospects of Western Countries
  Growth in the European Union since the outbreak of the global financial crisis is slower (1) than before the crisis, (2) than the trend would indicate, (3) than forecast and (4) than in the United States. The factors driving its weakness lie more on the supply side than the demand side. The loss of potential … Continued
Ernest Pytlarczyk
Stefan Kawalec
Articles from this author:
- 168th mBank – CASE Seminar Proceedings: Problems at Poland’s banks are threatening the economy
  Until now, the banking sector has been one of the strong points of Poland’s economy. In contrast to banks in the U.S. and leading Western European economies, lenders in Poland came through the 2008 global financial crisis without a scratch, without needing state financial support. But in recent years the industry’s problems have been … Continued
- 164th mBank-CASE Seminar Proceedings: Is a bubble inflating on Poland’s housing market?
  The year 2019 brought double-digit growth in Polish housing prices, for both new and existing homes. In some cities, real prices for residential real estate have reached the highest levels in history, even higher than at the peak of the boom in 2008. As a result, some are saying that there is a growing price … Continued
- 137th mBank-CASE Seminar Proceedings: The Banking Union: State of Art
  It is widely believed that the creation of the banking union initiated the integration of the EU banking market. The process is traced back to June 2012 (EU Summit decided to create the banking union), 4 November 2013 (effective date of the Banking Union Regulation), or 4 November 2014 (operational launch of the Single Supervisory … Continued
Author’s articles
Mariusz Więckowski

In a properly functioning economy, finance has important role to play in making main sectors of the economy – production, trade, services – to thrive. One of the most important – and often unappreciated – channels by which finance affects the processes taking place in the real sector is the selection of investment projects. It is banks and financial intermediaries that to a great degree decide which projects are carried out in the economy at a given moment, and which are not. If financial institutions are excessively conservative (which today is often an effect of the tight regulatory environment), they will prefer low-risk projects with high levels of collateral (e.g. mortgage loans). A financial system oriented this way will rarely be a source of problems, but at the same time not inclined to finance innovative projects with high potential to benefit the economy. Thus for any economy, a very important question is whether its regulatory framework smartly balances both of these aspects: financial system safety and the need to take on risk.

When analyzing the functioning of the financial system, it’s worth noting the gradual blurring of certain traditional boundaries. While decades ago households were the main source of savings in the economy, and the borrowers were enterprises and the public sector, today both households and companies are on both sides, as suppliers and receivers of capital. The boundary between the functioning of banks and capital markets is also increasingly blurred. Today banks operate broadly through the capital market, both as acquirers of securities and as issuers.

One area that has been developing dynamically in recent years is the flow of financial resources bypassing traditional intermediaries: direct lending through the peer-to-peer (P2P – direct financing of a project by business partners) and crowdfunding platforms (fundraising by collecting money online).

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