The impact of non-financial enterprise sector earnings on banking sector earnings: an evidence from Poland
The impact of non-financial enterprise sector earnings on banking sector earnings: an evidence from Poland

Summary/Abstract: Polish financial system is characterized by the leading role of banking sector and strong connections between it and the non-financial enterprises sector. The earnings of enterprise sector influence the earnings of banking sector in the long run both directly and indirectly with a certain lag. The paper aims at investigating the long-run relations between earnings of non-financial enterprises sector and banking sector in Poland over the period 2002−2011. The obtained empirical results indicate that the one-year lagged net earnings of enterprise sector were a significant factor influencing the net earnings of banking sector in the analyzed period, which implies the possibility of practical implementation of the revealed association in the short-term financial planning in banks.

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