While it is not uncommon for politicians and officials to suggest that when it comes to coronacrisis, the worst may be over, preparations for a darker scenario can be seen in the background. The Minister of Finance is currently establishing a Financial System Crisis Management Team. Will 2021 be the year of a new crisis, related to the banking system? Crisis Management Team in the Financial System The Minister of Finance has just appointed the Crisis Management Team in the Financial System. This one is supposed to react in case of indications related to a threat to the stability of the national financial system. The news has already been confirmed in the Minister's order. "The Crisis Management Team in the National Financial System in the Ministry of Finance, hereinafter referred to as the "Team", is established in order to ensure efficient and effective crisis management, within the competence of the Minister of Finance, Funds and Regional Policy, in the event of the occurrence of reasonable indications related to a threat to the stability of the national financial system". - was written in the document. It is known that the chairman of the Team will be a member of the management of the Ministry of Finance, while exercising substantive supervision over the tasks carried out by the Department of Financial Market Development in the Ministry of Finance. Today the position was filled by Deputy Minister Piotr Nowak. "The tasks of the Team include planning and coordinating intra-ministry anti-crisis actions and cooperation with financial safety net institutions in the event of a direct threat to the stability of the national financial system". - it was further written. It is worth adding that the Financial Stability Committee on Friday shared the assessment of threats to the financial system arising from the pandemic shock experienced in the economy. What awaits us in 2021? As the main source of risk today, the Committee recognizes the reduced profitability of banks. The reason for this may be the potential credit losses that banks may experience due to the impact of the COVID-19 pandemic. However, this is not the end of the story. The Committee is also concerned about the weakness of some institutions and the possibility of a "contagion" effect on other market participants. So will 2021 turn out to be even worse in some respects than the current year? It is possible that the COVID-19 pandemic will be over in just a few months. However, healing the economic damage will be more difficult and lengthy. Is the worst ahead? We'll find out soon enough. Tags banks crisis pln Poland
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