26.3.2 Deposits, cash and cash equivalents

The Group manages the credit risk related to cash deposits by diversifying the group of banks where such deposits are held. All entities with which the PGE Capital Group enters into deposit transactions conduct business activities in the financial sector. They are exclusively banks registered in Poland or conducting business activities in Poland in the form of branches of foreign banks with at least investment grade ratings and adequate liquidity ratings, considerable equity capital as well as strong and stable market positions. The share of the three major banks where the PGE Capital Group holds the largest cash balances as at December 31, 2020 was approximately 82% (81% in the comparative period).