Protein: Banks are waiting for investments, but there is no appetite from enterprises

The banking sector is waiting for an increase in investments in the economy, but currently most companies are not interested in obtaining external financial resources – Tadeusz Białek, president of the Polish Bank Bank Association, informed PAP. In his opinion, the connected PZU and Bank Pekao will create a strong capital group, one of the strongest in the region, with great possibilities of financing the economy.

“Increasing the level of investment in the economy will require financing from banks, but currently there is no appetite for investments from entrepreneurs. Research shows that, unfortunately, 70-80 percent of enterprises see no need to obtain financing at the moment,” Biznes Białek told PAP Białek in the lobby of the European Financial Congress in Sopot.

“The banking sector is waiting for investments, is ready to finance them. The announced transaction within the PZU group gives additional stimuli, introduces another very strong entity on the market” – he added.

The president estimated that in order to increase the role of banks in financing the investment needs of enterprises, additional incentives from the state are needed.

“In the current situation, we need very much capital to finance the economy, and at the same time we have a banking sector with very small relatively assets, especially if we compare it to GDP. We dramatically need capital to finance a dynamically developing economy. If, as a result of this operation, we can create a really strong capital group, one of the strongest in all of Central and Eastern Europe, then the assessment of these changes can only be positive” – He said protein.

PZU and PEKAO informed on Monday about the signing of the Memorandum about cooperation regarding the reorganization of the group. The new group is to be the head of the bank, not as the insurer at present. The PZU SA is to be divided in the first place by separating the holding company and in 100 percent. A company that has been dependent on her operating activities in the field of property and other personal insurance. Then the PZU SA holding company will be connected to the Pekao bank as a acquiring entity.

“The situation in which the insurer is the dominant entity in the group in which the second largest bank is a completely unusual situation. In most countries it is rather the opposite – in the banking group there is an entity that conducts insurance activity” – assessed Białek. (PAP Biznes)

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