Assessment of the Level of Financial Development of the Visegrad Group Countries in Comparison with the Eurozone

The purpose of the article is to explore the level of financial development of the Visegrad group countries in comparison with the Eurozone. In order to achieve the study's goal, the structure of the banking systems of countries and changes in assets in specific categories of financial institutions were analyzed, and it was also revealed what policies countries are pursuing to improve banking systems in general. As for the general level of elaboration of the banking sector in Poland, it remains less developed relative to the members of the Visegrad Group, as well as the nations of the Eurozone as a whole. This is indicated by the lower ratio of banking assets to the country's GDP. The largest share in the structure of the financial system of the Visegrad Group countries is represented by credit institutions. Investment and pension funds and insurance companies are represented to a lesser extent. As for the loan-to-GDP ratio, this indicator is declining in Poland over the entire period from 2018 to 2020, while in the Czech Republic, Hungary, and the Eurozone countries, there is a noticeable increase. In the ratio of deposits to GDP, growth is observed in all countries, including the Eurozone as a whole. Despite the risks of stagflation, compared to previous financial crises, the capital stocks and liquidity of the financial institutions of the countries of the Visegrad group have become much stronger and are better prepared to withstand new shocks (such as the current crisis around Ukraine) and their consequences.