Purpose – This paper aims to broadly discuss the consequences of EU enlargement on the Polish banking sector and the issues arising from it.Design/methodology/approach – There are two broad objectives of the paper – first, to discuss the scope and evolution of banking and regulatory reforms since Poland's accession to the EU and second, to examine some of the specific legal and regulatory issues that have arisen from the implementation of third capital adequacy directive (CAD3) in the Polish banking sector.Findings – Implications of CAD3 implementation in Poland include: Poland's capability of co‐operating within the EU financial sphere; making the Polish financial sector internationally competitive; opportunity for growth for the Polish banking sector; and a major overhaul of capital adequacy laws and institutions. A proposed mode of CAD3 implementation as an example of integrating Poland into the EU include: understanding the historical transformation process that the state underwent; using internationa...