Published : 2024-02-19

Global financial system collapse and its impact on Polish banking sector liquidity in 2007–2010

Marcin Zajder



Abstract

The genesis of the global financial crisis should be sought a few years before its first symptoms occurred in 2007. The development of the world (and Polish) economy was stable until then. The breakdown of American mortgage loans, and later the fall of Lehman Brothers, started a chain of events leading to the global financial breakdown. The Polish economy experienced this as well but the crisis shook the domestic banking system in particular.

Despite a relatively weaker shock in comparison to other countries, the
ownership structure of the Polish banking sector, combined with the crisis of confidence, caused liquidity situation disturbances. The article focuses on the reasons of disturbances of Polish banks issue potential, the progress of the crisis situation emphasizing the antypical liquidity conditions and the activity of the NBP in confronting the destabilization (including open market policy). The summary attempts to assess the Polish central bank’s actions regarding control of Polish banking sector liquidity.

Keywords:

global financial crisis, banking sector liquidity, finance gap, open market operations, National Bank of Poland



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Zajder, M. . (2024). Global financial system collapse and its impact on Polish banking sector liquidity in 2007–2010. Safe Bank, 26–50. Retrieved from https://ojs.bfg.pl/index.php/bb/article/view/402

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