Politics is weighing on banks again, and banks are weighing on the WSE. The specter of taxation is hanging over the sector again

The sectoral WIG-Banks index fell by over 3 percent on Friday (6 June), which brings the broad WIG index down 2 percent from Thursday's close, and WIG20 down 2.5 percent.

Sejm Speaker Szymon Hołownia said on Friday on Polsat News that Poland 2050 wants to include the introduction of a tax on excess profits for the banking sector in the renegotiated coalition agreement .

Bank Excess Profits Tax Returns to Political Spotlight

Hołownia noted that if banks pass on the cost of this tax to customers, Polska 2050 will propose a return to credit holidays.

- If we are to renegotiate the coalition agreement and include specific things that each of our representations care about, this could be one of those things. We talked to the Prime Minister yesterday that his Wednesday exposé should include elements of each of our programs - said Hołownia.

Massive supply attack on listed bank shares

The stock market's reaction to the coalition party's tax ambitions is quite decisive. The industry index WIG-Banks is losing over 3 percent, and all the banks in it are in the red.

PKO BP, Pekao and Bank Millennium are down more than 4 percent, while Santander Bank Polska and mBank are down more than 3 percent. Alior is down almost 3 percent. ING Bank Śląski is the strongest, with its valuation falling by less than 2 percent.

The strong supply attack on bank shares is the completion of a very weak week for representatives of this sector. On a weekly basis, PKO BP and Millennium shares have already fallen by over 10 percent, while in the case of Pekao, Santander and mBank the weekly balance is a drop of over 8 percent.