This is a translation of the paper (mimeo) written by Mark Mazur, the economic adviser to the Deputy of the Minister of Finance in Poland. The subject of considerations in this paper is the development of the Polish banking system and its current problems. The banking sector in Poland is in the process of restructuring and development. State banks have been privatized and financially restructured. Many small banks have established. On the other side, banking sector has been affected by diffictlties asocciated with the period of transformation to a market economy. The author analizes the process and its problems from the viewpoints of credibility, quality, of service, competition, privatization and consolidation. The author indicates; decreasing trend of bad dubts, passive financing activities of banks to private sector and inclination to investment into the state bonds, regional and segmental monopolization of the main banks, and difficulties in the process of consolidation.