Abstract:

During the COVID-19 pandemic, the Polish banking sector generated negative profitability ratios. Therefore, the present study evaluated several major determinants that affected the financial performance of Polish banks in this period. Based on the findings, it was indicated that the main determinants included non-economic factors related to the need to make provisions for mortgage loans granted in CHF, accompanied by the lack of statutory regulations of this legal risk. Furthermore, it is also important to highlight the negative effects of the pandemic that force the creation of reserves and taxes from other financial institutions significantly increasing business costs and the change in the interest rate policy of the National Bank of Poland (NBP).