By: The Quinnipiac University Economics Research Team, Michael Szwaja
Poland's banking sentiment index is based on the Pengab index, which reflects concern amongst individual and institutional bank clients. The Pengab index saw one of its lowest points in history in March, with the abrupt coronavirus outbreak disrupting the future outlook and certainty of economic stability for the country. The index experienced a severe drop of -31.9 points in the month of March leading to the index to falling into “negative territory”. This was 52.1 points worse compared to February. These numbers were collaboratively reported by the Polish Bank Association (ZBP), and market researcher Kantar TNS.
The end of September indicated a resurgence for the index from March lows with a 5.3 total point increase from that point and an incremental increase of 1.2 points in the month of September. It is assumed that the increase in customer activity on the Polish market for banking services has led to this growth, which can be related to further economic stability that has been pursued since the coronavirus outbreak.
Poland's Economy and banking sentiment index seems to exhibit a prosperous trajectory as concerns of the coronavirus lessening. This can also be associated with more consumer activity within Poland's banking activity. It will be important to see how the pandemic influences banking activity and economic stability in the upcoming months for Poland.
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