257 © Te Author(s) 2017 E. Miklaszewska (ed.), Institutional Diversity in Banking: Small Country, Small Bank Perspectives, Palgrave Macmillan Studies in Banking and Financial Institutions, DOI 10.1007/978-3-319-42073-8_10 10 L. Kurkliński (*) Institute of Corporate Finance and Investment, Warsaw School of Economics, Niepodleglosci Avenue 162, 02-554 Warsaw, Poland email: lkurkli@sgh.waw.pl The Role of Market and Cultural Diversifcation in the Evolution of the Polish Banking Sector Lech Kurkliński 1 Introduction Te Polish banking sector is a good example of the role played by market and cultural diversifcation. In 1989, Poland was entering a period of economic and social transition with a banking sector inherited from a centrally controlled economy. However, as early as the 1980s, attempts were being made to rebuild and gradually adapt the economy to the requirements of a market economy. Terefore, the aim of this chapter is to present the evolution of the Polish banking sector in terms of market changes as well as the impact of cultural factors. Stress has been placed on the role of subsidiaries of transnational fnancial corporations, which dominate the market.