Liquidity of Banking Sector in Poland - Determinants and Consequences

Liquidity is particularly important both for commercial activities of every bank, as well as for the functioning of the banking sector. The author of this paper presents the definitions of liquidity of commercial bank and of banking sector, proving that application of aggregate liquidity for the entire banking sector is relevant. An important phenomenon which describes banking sectors in most countries worldwide is excess liquidity which has been typically high, also in Poland, for many years. This situation is a result of many reasons and has different consequences. The main goal of this paper is to identify factors of liquidity and excess liquidity, their consequences for the banking sector and to indicate those which exert the strongest impact on liquidity of the banking sector in Poland.