Published by Global Banking & Finance Review®
Posted on February 11, 2026
2 min readLast updated: February 11, 2026
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BNP Paribas Poland CEO warns against a 'murderous' loan price war as banks face increased competition due to lower interest rates.
By Rafal Wojciech Nowak and Alicja Surdy
GDANSK, Feb 11 (Reuters) - The chief executive of BNP Paribas Bank Polska said on Wednesday that Polish lenders should try to avoid a "murderous" price war as competition for loans heats up, saying it could make lending unprofitable.
The sector is transitioning away from high interest rates that bolstered profits, after six central bank cuts last year lowered borrowing costs to 4.00%, spurring competition as banks seek to attract new customers to compensate for shrinking margins.
Structural excess liquidity means banks are "naturally" seeking credit assets to avoid being overly weighted towards treasury and central bank instruments, CEO Przemyslaw Gdanski from BNP Paribas' Polish unit said.
"We have a cake that is not growing that dynamically, and the number of consumers around the table is increasing, and the hunger is getting stronger," Gdanski told a press conference.
Instead of just competing on loan prices, he said BNP Paribas Bank Polska would lean on its parent group's know-how and global-market access to execute complex deals faster and more transparently.
"It's worth being active in areas where it’s not only about price, but where the ability to design, structure and finance plays a major role. Where the process is fast, efficient and transparent for the client," Gdanski said. "It’s in this kind of activity that one should look for competitive advantages."
(Editing by Milla Nissi-Prussak)
A price war occurs when competing companies lower prices to attract customers, often leading to reduced profit margins and potential financial instability.
Interest rates are the cost of borrowing money, typically expressed as a percentage of the loan amount, which lenders charge borrowers.
Credit growth refers to the increase in the amount of credit available in the economy, often measured by the total outstanding loans from banks to consumers and businesses.
Lending efficiency refers to the effectiveness of a bank in processing loans and managing risks while minimizing costs and maximizing customer satisfaction.
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