Monday, June 13, 2016

EKF VI: Banks and capital market are just as necessary – Polish Radio

In Sopot takes the European Financial Congress. One of the most important debates of the congress was dedicated to the theme: Is capital market will replace the banks finasowaniu economy.


 

In the debate organized the Oxford won by opponents of this thesis.


 

– We are at a good time, which allows for such changes. , Funding in Poland is dominated by banks. This is the result of history and capital needs. With these needs, we have a bank, funding is enough. It is easy and it is for both large companies and small. It fits any economic development of the company. However, if the company grows and its financial needs, if there is demand for money owed, the capital markets, corporate bond market is a great alternative, both in terms of the Polish market, as well as European – says Andrzej kopyrski, vice president of Bank PKO SA.

 

These are two different roles

 

According to the experts of both bank and capital markets as well as contribute to economic growth.


 

– Capital markets and banks play a partly different role. Banks have a dominant role for historical reasons. The capital market was established in Poland 25 years ago. Whereas now time is a discussion that should be finasowaniu proportions in the economy by banks and capital markets – says Waldemar Markiewicz, president of the Chamber of Brokerage Houses

 

You have to take into account the fact that the capital markets to a much greater degree shift capital from traditional industries to development.


 

– Banks have a greater tendency to finasowania traditional industries, for obvious reasons. They have to protect the deposits of the population – says Waldemar Markiewicz.


 

For start-ups better investor than bank

 

In various coins development of useful different way of financing.


 

– Capital markets function in symbiosis with finasowaniem bank – says Andrzej kopyrski, vice president of Bank PKO SA.


 

At start-ups or riskier sectors, the equity investor takes the risk of investment success. At some point you may need to take out bank debt and issue bonds.


 

– Bank financing to achieve the effect of the tax shield, it allows to increase the leverage of capital element. Added to this is knowledge, credit sector, knowledge about customers. Because if it supports the clients of the industry for many years, it understands how to work the client, but the entire sector – says Andrzej kopyrski.


 

Banks are able to use the knowledge and experience to better economic benefits.


 

Capital market willing to risk

 

In contrast, the capital market is more inclined to risk, and many start-ups, would not exist if not for him.


 

– It is therefore important to increase the capital market in finasowaniu companies. It is worth recalling the document the European Commission last year, which simply sees the growing gap in the productivity of the American economy and European in this small finasowaniu the European economy by the capital market. And much greater in the United States. Therefore, the objective of the Union is to increase the role of the capital market and reduce the dependence of companies from banks – says Waldemar Markiewicz, president of the Chamber of Brokerage Houses

 

However, not the replacement of one another, because one and the other sector is required and it will grow.


 

Capital market important for our economy

 

It is also very important in the conditions of the Polish economy.


 

– Chamber of Brokerage Houses saying for some time that you have to develop the capital market in Poland, because it’s important for the whole economy – adds Waldemar Markiewicz.


 

In Poland, there is a relatively low level of savings in relation to the developed countries.


 

– This means that the equity created with their own savings businesses are small and the capital market is a place where increased their savings for someone and then you can go to the bank on the loan – says the president of the Chamber of Brokerage Houses.


 

One should also take into account the Polish economic structure.


 

– This sector is creating jobs. Therefore, the local capital market is an important bards – says Waldemar Markiewicz.


 

There is also a third condition important in the context of the Plan for Responsible Development, which implies an increase in productivity and support growth of domestic capital.


 

– Productivity depends on innovation and innovation is largely financed by those who take greater risks. It must also be increased supply of domestic capital. What is needed is economic policy that encourages risk. Need tax preferences for capital gains – adds Waldemar Markiewicz, president of the Chamber of Brokerage Houses.


 

Banks need to improve

 

The game can also enter crediting innovative projects by banks.


 

– In this regard, banks have to improve – admits Andrew kopyrski, vice president of Bank PKO SA. – It is not easy, because they do not manage their own funds, but the funds entrusted to and is accountable to the people that make deposits in our institutions – he added.


 

it is the most difficult part of the transition from a small business venture in the economy to an innovative company that is able to generate already have some financial resources and is able to find its place in the market. It’s so produce a certain symbiosis of the capital market with banks and some cooperation in the development of enterprises.


 

necessary cooperation

 

– Actually, cooperation is the key to success. And in Poland, we are creating the platform. We exchange experiences, working together – says the vice-president of Bank PKO SA.


 

Waldemar Markiewicz, president of the Chamber of Brokerage Houses notes that are obviously elements of competitiveness between these markets, but in essence it is a symbiosis and cooperation.


 

In addition, the company that goes public is more transparent and easier to her credit. For the bank it is better if the company is quoted, if only because of the discipline of reporting and the level of professionalism.


 

– Easy to analyze a public company, which operates in a different regime information. It is important to also share price – says Andrzej kopyrski with PKO SA.


 

The banks have a lot of products such as unfunded. Advisory, cash management and accounts receivable.


 

However, you must remember that Silicon Valley fund investors, and not banking institutions.


 

Sylwia Zadrożna game

 
 
 
 
 
 
 
 
 
 

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