Proceedings of the 9th International Conference on Research in Management and Economics
Year: 2024
DOI:
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Diversification of the Sources of Financing Banks in Poland During the Period of Economic Instability and Climate Changes
Dr. Mateusz Muszyński
ABSTRACT:
The purpose of this paper was to measure and assess the level of diversification of the sources of financing banks in Poland during the period of economic instability and climate changes. The establishment of the climate neutrality rules in the European Union overlaps with the Covid-19 pandemics, war in Ukraine and the introduction of the new prudential requirements for financial institutions. The article verifies the research hypothesis which assumes that during the period of economic instability and climate changes the level of diversification of financing in banks has decreased. It should be noted that for the first time after the global financial crises banks have been put under such extreme market conditions resulting in the need to perform the necessary modifications of their structure of financing. The verification of the adopted research hypothesis required the use of various research methods. The theoretical part uses the method of critical analysis of both national and international literature (literature study). The empirical verification was based on the data derived from the non-consolidated annual financial statements and reports of the management boards of commercial banks in Poland for two periods: 2010- 2019 (stability) and 2020-2023 (instability). The empirical research was conducted for ten largest commercial banks in Poland according to the size of their balance sheet measured at 31.12.2023. Verification of the research hypothesis was possible by using a measure of diversification (DHH index) in the form of a complement to the Herfindahl-Hirschman index. A downward trend was identified in the average value of the DHH diversification index of external financing sources for the surveyed banks.
keywords: capital structure; banking sector; financial institutions; climate regulations; European Green Deal