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Safe Bank

Published: 2021-10-03

The Role of Financial Supervision and Deposit Guarantee Scheme in Providing Stability in Credit Union Sector in Poland

Mikołaj Węgrzyn Logo ORCID
Section: Problems and Opinions
https://doi.org/10.26354/bb.5.2.83.2021

Abstract

Credit unions (SKOKs) are a specific example of shadow banking institution. Deep changes in range of conditions of their functioning create an important field of research regarding the impact of a financial safety net on the activity of the shadow banking sector. The article presents a study of selected issues connected with the influence of a financial safety net on the functioning of shadow banking institutions on example of SKOKs.
The article verifies the hypothesis concerning a growth of social trust toward SKOKs because of their participation in deposit guarantee scheme provided by BFG and supervised by KNF. Thanks to the undertaken research it was demonstrated that despite of SKOKs being included in financial safety net components, most consumers still choose banks as their deposit and loan facility, because they do not trust SKOKs. From the clients’ perspective, there has been some improvement in SKOKs’ image, however it is not a big enough difference that could encourage clients to decide to try SKOKs services, while there is a significant difference on the economic cost side. There has been a growth in charger to the BFG for the payoffs of guaranteed sums and subsidies to the acquiring entities after a series of bankruptcies and acquisitions in the SKOK sector (after the review of the existing financial statements), after the inclusion of the SKOKs in the deposit guarantee scheme and into the KNF’s supervision.

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Citation rules

Węgrzyn, M. (2021). The Role of Financial Supervision and Deposit Guarantee Scheme in Providing Stability in Credit Union Sector in Poland. Safe Bank, 83(2), 96–120. https://doi.org/10.26354/bb.5.2.83.2021

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Vol. 83 No. 2 (2021)
Published: 2021-10-03


ISSN: 1429-2939
eISSN: 2544-7068
Ikona DOI 10.26354

Publisher
Bankowy Fundusz Gwarancyjny

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