Foreign capital vs. institutional and cultural conditions for the banking sector in Poland

Abstract

The Polish banking sector is dominated by foreign capital. The performance
and development of banks are determined by the institutional and
cultural circumstances of the host country, i.e. Poland. Most of the foreign
bank owners come from countries where the market economy has long traditions
and their societies are different in terms of perception and compliance

with law. Thus, the article focuses on the importance of these differences for
the development of the Polish banking sector. It also shows the main barriers
and determinants related to the institutional and cultural context, including
regulations and governance issues, which foreign capital must deal with. The
presented opinions are based on the available literature, reports and own
studies – 59 interviews conducted among the managerial staff of banks with
foreign capital (current and former board members, supervisory boards and
managing directors), as well as representatives of banking supervision (members
of the Financial Supervision Commission).