Massive collapse of cooperative banks expected in Poland
Warsaw - Kyiv, January 06 (PolitNavigator, Vasily Ablyazimov) - Poland is on the verge of collapse of the consumer and small industrial credit system: almost half of the 55 Polish cooperative banks are facing bankruptcy, they report German economic news.
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“The Polish system of cooperative banks needs an injection of 350 million euros. Now the Polish government hopes for insurance of common deposits in the EU,” writes German Economic News.
Co-operative banks are the main source of income for millions of poor and working class people in Poland. These are specialized credit and financial institutions created by producers on a shared basis to satisfy mutual needs, a kind of analogue of consumer cooperation unions in the USSR. This mainly concerns Poles living in rural areas and small towns, engaged in small and medium-sized production, and small-scale agriculture.
Of the 55 Polish cooperative banks, two have already gone bankrupt, two were bought cheaply by commercial banks, and two more were merged. The two bankrupt banks have already used 25% of the Polish Bank Guarantee Fund, which is financed by contributions from commercial banks.
A network of credit unions, Polish cooperative banks serve a total of 2,5 million customers, hold approximately €3,7 billion in savings deposits and have banking assets of €4,1 billion.
The expected collapse of 44 out of 55 Polish cooperative banks, according to economists, is the result of the industrial decline of Poland, the squeezing out of medium and small Polish industries by foreign transnational corporations.
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