Experts highlight the need for a new regulatory approach to concentration limits to increase banks’ involvement in strategic investments. A stable and predictable legal environment is one of the key factors influencing the condition and capacity of banks to finance the development of the Polish economy. The impact of legal regulations on the sector was a central topic during the 15th edition of the European Financial Congress. Deloitte experts also emphasized the potential benefits of banks expanding into insurance product sales.
Strengthening the Competitiveness of the Polish Banking Sector
The competitiveness of the Polish banking sector was one of the major themes discussed during the Congress. Representatives from banks, advisory firms, and regulatory institutions debated the most pressing challenges and opportunities for strengthening the sector’s position in the European market. Deloitte was a partner of the event.
Quality and Pace of Regulatory Implementation
One key focus was the influence of regulations on the development of the Polish banking sector. During the debate titled “Regulatory Environment – What Can Be Done to Boost Competitiveness and Growth Potential of the Banking Sector?”, participants pointed to recent volatility in macroeconomic and geopolitical conditions. They emphasized the need for reforms that would strengthen Polish banks, especially to ensure the financing of large infrastructure projects. One proposed reform was revising capital concentration limits, which panelists argued currently hinder the ability of banks to finance large-scale investments.
Experts see opportunities in regulatory reform. As a positive example, they cited the Polish Financial Supervision Authority’s (KNF) proposal to simplify financial services regulations across the EU single market. Another issue raised was Poland’s tendency to implement “gold-plating”—introducing more stringent requirements than those mandated by EU directives—which can stifle growth potential. At the same time, panelists stressed that financial sector stability is a public good, and regulatory changes must be carefully planned given their implications for citizens and state functioning.
Przemysław Szczygielski, leader of Deloitte’s financial services for Poland, Ukraine, and the Baltic states, noted that differing regulatory implementation speeds across countries can impact the competitiveness of Poland’s banking sector. He advocated for better legislative planning to reduce the costs associated with regulatory arbitrage. He also suggested that allowing banks access to public and sectoral databases (e.g., ZUS, credit registries) could improve customer understanding and enable more tailored product offerings—with customer consent.
Poland’s banking sector has proven resilient in the face of economic shocks, such as the pandemic. To enhance its ability to compete globally, regulatory changes should target areas where Polish law exceeds EU minimums or where investment potential can be unlocked. Szczygielski concluded, “We need proportional, predictable, and innovation-friendly regulations. Only in such an environment can banks effectively support economic growth and respond to rapidly evolving customer needs.”
Insurance as an Opportunity for Banks
Another major discussion focused on revenue stabilization strategies through banks’ participation in insurance product sales. During the panel “Insurance – Stable Revenues Amid Upcoming Interest Rate Cuts?”, it was noted that in Poland, insurance contributes just a few percent of banks’ total revenues, compared to 20–30% in countries like France or Spain.
Experts emphasized that insurance product distribution not only boosts revenues but also stabilizes them, thanks to the non-cyclical nature of insurance income—unaffected by interest rate fluctuations. This becomes especially relevant when loan interest revenues decline. Panelists also highlighted that insurance sales could strengthen customer loyalty and relationships, provided the service quality is high.
However, barriers to this expansion were also discussed. Frequent regulatory changes complicate distribution, and customers expect the same seamless “one-click” experience for insurance as they do for banking products.
Experts praised the Polish banking sector for its strong regulatory standards, service quality, and use of advanced technology in insurance sales. They also called for tax incentives to support the development of pension and savings products. With demographic changes underway, promoting long-term savings becomes increasingly important—and insurance products are well-suited for this purpose.
Marcin Warszewski, partner and insurance services leader at Deloitte, summarized: “Western market experience shows that the insurance share of bank revenue can be significantly higher. However, this requires simplifying regulations and stabilizing the legislative process. The banking sector has the potential to play a key role in promoting insurance in Poland and helping to reduce the protection gap.”
Source: CEO.com.pl – New Regulatory Approach Could Boost Bank Engagement in Economic Development
