WARSAW, Poland—This country’s financial regulator, known by the abbreviation KNF, is seeking court approval to liquidate a large credit union here, SKOK Wolomin. Poland’s credit unions are known as SKOKs.
By declaring the credit union bankrupt, depositors would be able to get their $684-million in deposits back through Poland’s Banking Guarantee Fund.
SKOK Wolomin is just the latest credit union in Poland to encounter financial problems, and the regulator has said it will be improving its oversight. Poland’s CUs, which were resurrected with the fall of communism and have generally seen strong growth, still represent just 1.1% of financial assets in Poland. SKOK Wolomin has approximately three-billion zlotys, or $1 billion, in assets.
Some failed credit unions in Poland have been taken over by banks, including
Bank Pekao SA, which took over SKOK Kopernik, and Alior Bank, which took over SKOK Swietego Jana z Ket.