WARSAW, Poland–The bankruptcy of a third credit union in this country in the last two years is putting a strain on Poland’s banks, which share a deposit insurance fund with credit unions. The new costs to banks comes at the same time they are also facing a new tax this year as well as higher capital requirements amid record low interest rates, according to Bloomberg.
The most recent CU to file for bankruptcy is SKOK Kujawiak Credit Union, which attempted a restructuring that even included a potential takeover by a bank before the failure occurred. That bankruptcy follows filings by two other CUsSKOK Wolomin and SKOK Wspolnota, which required $800 million payouts to members from the banking guarantee fund.
A large cooperative lender in the country also failed in 2015. Bloomberg reported that the government’s plan to impose a new levy on the industry have erased 24% of banks’ value in 2015.
The failures comes at the same time the national regulator is seeking to find a buyer for another troubled CU, SKOK Wyszynski, while six other CUs are under “administration” of the regulator, according to Bloomberg.