Regulation of Bond/Debt/Debenture Market in Poland

Abstract

Debt securities statistics important for central banks, and especially for the National Bank of Poland because if the statistical system imposes a responsibility on the central bank it must meet all the requirements of statistical excellence. This is a very important argument, but only a formal one for our interest in this subject. There is a second stream of motives for addressing this problem in central banks. Experience gained over the last decade shows clearly that debt securities, especially those issued by enterprises, are becoming increasingly important for monetary transmission mechanisms and for financial stability. Among other things, there is empirical evidence that corporate bond spreads lead real economic activity. The situation in the debt securities market is also meaningful for the general condition of the credit market, as bonds are close substitutes for banking credit. Development of the debt securities market also contributes to the so-called financial market deepening effect, with multiple consequences for transmission mechanisms. It should be noted that, owing to the wide variety of channels through which debt securities can interfere with monetary policy operations, the central banks are interested in collecting detailed information on these instruments. In practice it results in a complexity of standards for debt security statistics that central banks are expected to meet.