01847cas a2200241 a 4500 AALejournalIMF012123 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475505658 1018-5941 BD-DhAAL BD-DhAAL Lu, Yinqiu. What Drives the POLONIA Spread in Poland? / Yinqiu Lu. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (19 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Since the start of the 2008 - 09 financial crisis, the Polish Overnight Index Average (POLONIA) has persistently been below the policy rate, suggesting a limited influence of the NBP's open market operations on the short-term interbank rate. In this regard, this paper analyzes the behavior of the POLONIA spread and explore several potential factors that could influence the spread. An empirical analysis confirms that the negative POLONIA spread is related to a few factors, which include the existence of the structural liquidity in the banking system; bank's unwillingness to lock up liquidity in the NBP bills; the frontloading of banks' fulfillment of the reserve requirements; and external market sentiment. The analysis also shows the effectiveness of the NBP's responses to the financial crisis and structural liquidity surplus. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2012/215 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/215/001.2012.issue-215-en.xml IMF e-Library