Jacek Jastrzębski, Chair of the KNF, delivered a speech at the opening of the ‘Risk and Regulations in the Financial Market’ seminar. The event is organised by the UKNF in cooperation with the European Financial Congress. This year’s edition is also co-organised by the International Monetary Fund. This edition is focused on long-term investments. 

• ‘This year we decided to dedicate our seminar to long-term investments made through the capital market. We try to select topics for our meetings so that we can discuss matters that are particularly relevant in the context of discussions regarding the financial market. The matter of stimulating long-term investments is one of such topics,’ Chair of the KNF said, when opening the seminar.

Jacek Jastrzębski has emphasised that the Polish economy needs large financial expenditure on energy transition, development of innovative sectors, and infrastructural investments. The earlier growth drivers based, among others, on low labour costs, will be running out, and for this reason it is necessary to increase productivity through investments and modernisation of the economy. In this context, it is of key importance to ensure capital, which for prudential reasons cannot be obtained exclusively from the banking sector. This is why a more sustainable financing mix is needed, with a bigger role played by the capital market. 

The second important aspect of this issue is demography. The ageing of the population and longer life expectancy result in a growing need to accumulate retirement savings. The development of long-term forms of savings may, at the same time, ensure the financial security of citizens and create a capital pool necessary for financing economic investments. Thus, the capital market is becoming a tool that links investment needs of the state and savings needs of the society. 

Jacek Jastrzębski has also emphasised that the development of the capital market is difficult without engaging assets accumulated by pension schemes, as confirmed by the experience of countries with developed financial systems. It is, therefore, necessary to mobilise private capital and develop collective investment institutions, including institutions aimed at securing retirement protection. 

One of topics worth mentioning in this context, in his opinion, is also the development of private equity market. Equally important is corporate governance, which increases confidence among investors and fosters stability of the market.