## Republic of Poland: Financial Sector Assessment Program-Technical Note-Cooperative Banks and Credit Unions

_IMF Staff Country Reports, June 3, 2019_

## Source details

**Canonical URL:** [Republic of Poland: Financial Sector Assessment Program-Technical Note-Cooperative Banks and Credit Unions](https://www.imf.org/en/publications/cr/issues/2019/06/03/republic-of-poland-financial-sector-assessment-program-technical-note-cooperative-banks-and-46961)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/06/03/republic-of-poland-financial-sector-assessment-program-technical-note-cooperative-banks-and-46961/index.md)
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## Bibliographic details
- Published: June 3, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498318099.002

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### Overview
- This Technical Note reviews the cooperative bank and credit union sectors in the Republic of Poland.
- Focus areas:
  - The situation of the two sectors that are both in states of transition.
  - The regulatory and supervisory arrangements.
  - The safety net and resolution regime within the context of the crisis management framework.
  - Perspectives on the sustainability of institutional models and the sectors within a modernizing and competitive banking sector.
- High-level assessment:
  - Most cooperative banks and credit unions are found to be stable; however, each sector has its own issues.
  - The Financial Sector Assessment Program is broadly supportive of the policy direction for cooperatives, while it questions whether the credit union sector should remain standalone.
  - The two existing Institutional Protection Schemes and their affiliating banks need to be strengthened to ensure sustainability.
  - Policymakers are advised to decide whether a standalone credit union sector remains appropriate and, if not, define a strategy to transition viable credit unions to become or consolidate with banks.

### Key findings
- Stability assessment:
  - Most cooperative banks and credit unions are found to be stable.
  - Each sector has its own issues (unspecified in the summary).
- Institutional Protection Schemes:
  - Two existing Institutional Protection Schemes and their affiliating banks require strengthening to ensure sustainability.
- Credit union sector viability:
  - The IMF questions whether the credit union sector should remain standalone.
  - Recommendation that policymakers decide on the standalone appropriateness of the credit union sector and, if not appropriate, define a transition strategy for viable credit unions to become or consolidate with banks.

### Regulatory and supervisory arrangements
- The Technical Note reviews the regulatory and supervisory arrangements for cooperative banks and credit unions (specific arrangements and details are part of the full note; summary emphasizes this as a key focus area).

### Safety net, resolution regime, and crisis management
- The Technical Note examines the safety net and resolution regime within the context of the crisis management framework for the cooperative bank and credit union sectors.
- Emphasis on ensuring sustainability of institutional protection mechanisms and affiliating banks as part of crisis preparedness.

### Policy recommendations and strategic advice
- Broad policy stance:
  - Supportive of the current policy direction for cooperatives overall.
- Specific recommendations:
  - Decide whether a standalone credit union sector remains appropriate.
  - If the standalone model is not appropriate, define a strategy to transition viable credit unions to become or consolidate with banks.
  - Strengthen the two existing Institutional Protection Schemes and their affiliating banks to ensure sustainability.

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## Content in this bundle

- **1polea2019007 - Executive Summary**
  - [1polea2019007 - Executive Summary (Markdown version)](/-/media/files/publications/cr/2019/1polea2019007.pdf.md){rel="alternate" type="text/markdown"}
  - [1polea2019007 - Executive Summary (PDF)](/-/media/files/publications/cr/2019/1polea2019007.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2019/06/03/republic-of-poland-financial-sector-assessment-program-technical-note-cooperative-banks-and-46961_