Polish banking sector increases financing for defense industry

The Polish banking sector is increasingly engaging in the financing of the defense and security industries. According to a report by the Warsaw Institute of Banking, financial institutions see significant growth potential in funding defense contracts, bank guarantees, export financing, and production investments.

Research by the Polish Bank Association indicates that approximately 80% of the banking sector, measured by asset share, is involved in financing security and defense-related ventures. This includes roughly 70% financing dual-use projects, nearly half participating in arms procurement financing, and over 30% supporting the development of new technologies.

Przemysław Krych, founder of Cornerstone Investment Management, noted that the defense sector has transitioned from being viewed as a ‘sin industry’ to a sector attracting institutional investors. Despite this shift, experts identify unclear regulations and difficulties in risk assessment as primary barriers to further investment.