Banking Sector: Capitalisation To Drive Expansion

The solid rate of capitalisation of the Polish banking sector in recent months has further strengthened our positive outlook for the industry, both in terms of diffusing the risks to systemic stability and paving the way for future expansion. While we expect loan (and broader) asset growth to moderate going forward, we see potential for a greater diversification into bond holdings alongside the government's planned bumper fiscal deficit for 2010

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