Bank on Poland

Poland’s banks are exceeding expectations reporting strong profits for 2010 and rebuilding their balance sheets faster than many west European counterparts.

Millennium Bank this week reported a better-than-expected 2010 net profit of 326 million złotys -- 217 times higher than 2009′s 1.5m złotys.  Multinational banks operating in the Polish market are doing great while rival banks without Polish subsidiaries will be very envious.

The main reason for the strong showing:  Poles have proven to be unwilling to walk away from their obligations. Millennium reports that only 0.9 per cent of its outstanding mortgage credits are endangered.

Just a couple of years ago analysts worried such loans posed a danger to Poland’s banks, and some forecasters feared a banking crisis in central Europe could sink their west European parent banks. Instead, those groups with Polish, Czech and Slovak operations are sailing on. Those without may feel indigestion.

How many American bankers does it take to...beg for taxpayer bailouts?