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The Polish Economy 2023 and Beyond: How to Mend Home Loans

Author

Listed:
  • Dariusz Filar
  • Andrzej Reich
  • Michał Polasik
  • Ewa Balcerowicz

Abstract

The subject of this publication, reflecting the discussion held between experts on 30 March 2023, is that of housing loans in Poland. The publication focuses primarily on discussing the state of mortgages (at the end of the first quarter of 2023). This state is the effect of (a) legislation, (b) institutional solutions, (c) past processes in the financing of housing loans, and recently also (d) the high level of inflation dampening both lending by the banks and the level of interest among bank customers. The publication’s second purpose is to present recommendations which, once put into effect, could rectify today’s lamentable situation. All of the proposals presented in this publication lead to one general recommendation: the answer to the current shortcomings lies not in isolated, single changes; what is essential is a new system for the market. This new system should be (a) flexible, (b) free of legal risk while at the same time (c) better protected against market risk, and (d) it should also contain a more comprehensive range of products; on this market (e) the state, as the regulator, should intervene ex-ante and not only ex-post (as has been the case in Poland for the last 20 years), while (f) customers should have the essential minimum of financial knowledge, first and foremost regarding awareness of the risk related to, which by their very nature are long-term loans.

Suggested Citation

  • Dariusz Filar & Andrzej Reich & Michał Polasik & Ewa Balcerowicz, 2024. "The Polish Economy 2023 and Beyond: How to Mend Home Loans," mBank - CASE Seminar Proceedings 0176, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:mbanks:0176
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    File URL: https://case-research.eu/app/uploads/2024/06/id_plik7834.pdf
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    References listed on IDEAS

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    1. Alm, James & Follain, James R., 1984. "Alternative Mortgage Instruments, the Tilt Problem, and Consumer Welfare," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 19(1), pages 113-126, March.
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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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