How does the ownership structure affect banks’ credit quality in the Polish banking sector?

This paper aims to analyse the effects of type of ownership structure on the quality of the credit portfolio. In particular, the paper investigates the relationship between different bank ownershipstructures in Poland, focusing on the dichotomies of state versus private control and domestic versus foreign control. The data used covers the period from 2007 to 2024, and the methodology is based on statistical analysis and panel data regressions. The findings indicated that banks under state control exhibited a higher frequency of impaired loans compared to their privately controlled counterparts. Additionally, the analysis demonstrated that foreign-controlled banks possessed a lower percentage of impaired loans, indicating a better-quality loan portfolio.