The Central Bank of Poland’s June 2026 Financial Stability Report says the domestic financial system is stable and resilient, with the systemic risk assessment improving since the previous edition. Banks are described as retaining a high capacity to absorb losses and continue providing financial services. Legal risk remains a challenge for the banking sector, although it mainly affects the portfolio of PLN-denominated household loans. Uncertainty over the consequences of the free credit sanction remains significant, while risks linked to challenges to WIBOR-based loan agreements have decreased following the Court of Justice of the European Union ruling in February 2026. The report also places greater emphasis on geopolitical risk, citing the high share of Treasury securities in financial institutions’ assets, the prospect of higher general government debt and cyberthreats linked to the development of advanced artificial intelligence models. To support financial stability, the Central Bank of Poland recommends stronger financial and operational risk management by financial institutions during heightened geopolitical risk and a proportional approach to consumer protection that limits scope for abuse.
Central Bank of Poland2026-06-16
Central Bank of Poland says systemic risk has improved, warns legal and geopolitical risks remain
The Central Bank of Poland said its latest Financial Stability Report shows an improved systemic risk assessment and a stable, resilient domestic financial system. Legal risk remains concentrated in PLN household loans, while challenges to WIBOR-based contracts have eased after the February 2026 Court of Justice of the European Union ruling. The report also highlights rising geopolitical and cyber risks and recommends stronger risk management and more proportionate consumer protection rules.