For many years, there were strong consolidation processes in the Polish banking sector. For example, in 2009 there were 49 commercial banks operating in Poland, while in 2023 there were only 29. The decline was largely caused by acquisitions and mergers of individual institutions. Recently, however, the number of bank mergers and acquisitions has decreased somewhat.

So has the sector’s consolidation potential been exhausted? Or do Polish banks face such significant challenges in the future, related, for example, to regulatory pressures or the scale of financing needs, that further consolidation is inevitable?

What is the optimal level of concentration in the banking sector and does it vary from country to country? In the European Union, the share of the 5 largest credit institutions in the sector’s total assets ranged from about 30% (Luxembourg) to more than 98% (Greece) in 2021, with the EU average of about 67%. In Poland, the ratio reached just over 58%, which may suggest that there is room for further mergers and acquisitions.

Finally, it should be asked whether consolidations in the banking sector are mainly beneficial, providing in particular economies of scale, stability of institutions and allowing international expansion of banks? Or is it just the opposite, with market fragmentation in the interest of customers, while M&A raises systemic risks, resulting in entities too big to fail?

These and other questions will be attempted to be answered by the participants of the panel On Consolidation in the Banking Sector. Opportunities, threats, prospects.