Deposits with rates of above 8 percent – this is a standard in Poland today. There are more and more offers with 9, 10 and even 11 percent for monthly deposits. WIBOR amounts to 6.5 percent. Mateusz Morawiecki, BZ WBK CEO, appeals to stop the deposit war.
“We must continue the credit action to secure cash to the economy in face of upcoming slowdown. Deposits are highly related to credits”, BZ WBK CEO said.
He believes that too high prices of deposits will result in higher prices of credits. Credits will thus become less available and less secure for banks because it will be more risky to have a highly-interest credit paid back. Moreover, growing costs of deposits gaining will make the whole banking sector less profitable. Indices will fall and credit action will decrease.
“The war is a signal for foreign institutions that the risk of lack of cashflow is higher than it really is”, Mateusz Morawiecki added.
That’s why foreign investors sell instruments denominated in the zloty. When the currency depreciates, the nominal value of credits denominated in foreign currencies grow. The credit/deposit index grows. Banks are able to give less credits. Besides, growing interests of deposits will help foreign banks. They will get the best and the safest financial projects.
“Polish banks are not able to give a credit with WIBOR plus 1.5 percent
because it’s only 8.3 percent, less than deposit interest. I’m afraid, foreign
banks will replace the Polish ones”, Mateusz Morawiecki warned.