Capital adequacy standards on the case of selected banks in Poland under economic uncertainty

Abstract

PURPOSE: The aim of the study was to identify and assess the determinants of capital adequacy on the case of selected banks in Poland under economic uncertainty.

DESIGN/METHODOLOGY/APPROACH: The research used selected capital adequacy measures recommended by the central bank and the Financial Supervision Commission. The standards were verified in 2018-2022 for purposively selected banks in Poland: ING Bank Slaski S.A., mBank S.A. and Bank Millennium S.A. The assessment was based on a comparative analysis of the reviewed banks' financial statements.

FINDINGS: As a result of the descriptive analysis, it was confirmed that the reviewed banks, despite the risk of economic uncertainty, met the stansards of capital adequacy during the set period. In this context, particularly sensitive risk areas of banking activities were identified.

PRACTICAL IMPLICATIONS: In business practice, the monitoring of financial adequacy standards informs both banks and entrepreneurs: about business risks, the need to modify credit policy, the need for recapitalization. It is a useful 'barometer' of economic uncertainty verification.

ORIGINALITY/VALUE: Permanent evaluation of banks' capital adequacy standards, based on selected evaluation measures, allows monitoring the risk of banking activity under conditions of economic uncertainty.