World Bank2014-03-252014-03-252014-01https://hdl.handle.net/10986/17358A World Bank-International Monetary Fund (IMF) mission visited Warsaw February 19 - March 5, 2013, to undertake an update of the Financial Sector Assessment Program (FSAP) conducted in 2006. The team was led by Luc Everaert (IMF) and Brett Coleman (World Bank) and included Karl Driessen, Nancy Rawlings, Yinqiu Lu, Jorge Chan-Lau, Rishi Ramchand (all IMF), Katia D'Hulster, Heinz Rudolph, Andrey Milyutin, John Pollner, Ignacio Tirado (all World Bank), as well as external experts David Walker (Canadian Deposit Insurance Corporation), Monnie Biety (independent consultant), and Fernando Montes-Negret (former World Bank and IMF). This note is prepared by Monnie Biety. The primary focus of this note is on the legal, regulatory, and supervisory framework of Poland's credit unions (SKOKs) at a time when the authorities are transitioning them to a stronger, more stable footing. The note reviews the law, regulations, and supervision regime in force at the time of the FSAP mission and suggests ways to help strengthen the SKOKs in a phased manner that gives viable SKOKs the necessary time and support to meet the new requirements. While the draft law was not reviewed during the FSAP as it was anticipated that there were to be many changes to the draft, key aspects of the draft law were analyzed using information and reports gathered that discussed the contents of the law. The note concludes with a discussion of these elements of the draft law. Numeric data used in this report were provided by National Association of Savings and Credit Unions (NASCU) during the FSAP mission, with some corrections provided by KNF post mission.en-USCC BY 3.0 IGOACCOUNTINGACCOUNTING PRINCIPLESACCOUNTING RECORDSACCOUNTING STANDARDSACCOUNTING SYSTEMSADMINISTRATIVE ACTIONSALMAMOUNT DUEARREARSASSET CLASSASSET LIABILITY MANAGEMENTASSET RATIOASSETS RATIOAUDITINGBALANCE SHEETBANK ACCOUNTBANK GUARANTEEBANKING SECTORBANKING SYSTEMSBANKRUPTBONDBOND INSURANCEBONDSBOOK VALUEBORROWERBUSINESS PLANBUSINESS PLANSCAPITAL ACCOUNTCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL ADEQUACY REQUIREMENTSCAPITAL BASECAPITAL CONCENTRATIONCAPITAL GROWTHCAPITAL REQUIREMENTSCAPITAL STANDARDSCAPITALIZATIONCASH FLOWCLAIMCODE OF ETHICSCOLLATERALCOMMERCIAL BANKSCOMMERCIAL LOANCOMMERCIAL PAPERCOMMERCIAL TERMCONFLICT OF INTERESTCONFLICTS OF INTERESTCONSOLIDATIONCONSOLIDATION PROCESSCONSUMER PROTECTIONCONTRACTUAL RIGHTSCORRECTIVE ACTIONCOUNTRY CREDITCREDIT BUREAUCREDIT CONTROLCREDIT INSTITUTIONSCREDIT UNIONCREDIT UNIONSCREDITORSCREDITSDEBIT CARD PRODUCTSDEBTDEBTSDEPOSITDEPOSIT GUARANTEEDEPOSIT INSURANCEDEPOSIT INSURANCE SCHEMEDEPOSIT INSURANCE SYSTEMDEPOSITORSDEPOSITSDISPOSITIONDIVIDENDDIVIDENDSECONOMIC CONDITIONSECONOMIC SHOCKSENFORCEMENT OF SECURITYEQUITY INVESTMENTSEXTERNAL BORROWINGEXTERNAL CREDITFACE VALUEFINANCIAL DATAFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL PROBLEMSFINANCIAL RATIOSFINANCIAL RESOURCESFINANCIAL SERVICESFINANCIAL SITUATIONFINANCIAL STATEMENTFINANCIAL STATEMENTSFINANCIAL STRENGTHFINANCIAL SUPPORTFINANCIAL SUSTAINABILITYFINANCIAL SYSTEMFIXED ASSETSFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE RISKGOVERNANCE STRUCTURESGUARANTEE FUNDHOLDINGINCOME STATEMENTINFORMATION SYSTEMINFORMATION TECHNOLOGYINSOLVENCYINSURANCE COMPANYINSURANCE CORPORATIONINTEREST INCOMEINTEREST PAYMENTSINTEREST RATEINTEREST RATE RISKINTEREST RATE RISKSINTEREST RATESINTEREST RATES ON LOANSINTERNAL AUDITINTERNAL AUDITSINTERNATIONAL BANKINTERNATIONAL CREDITINTERNATIONAL STANDARDINTERNATIONAL STANDARDSINVESTINGINVESTMENT ACTIVITIESINVESTMENT ACTIVITYINVESTMENT POLICYLAWSLEGAL RIGHTLEGAL RIGHTSLIABILITYLIENLINE OF CREDITLINES OF CREDITLIQUID ASSETSLIQUIDATIONLIQUIDATIONSLIQUIDITYLIQUIDITY MANAGEMENTLIQUIDITY PROBLEMLIQUIDITY RATIOLLCLOANLOAN AMOUNTSLOAN APPLICATIONLOAN APPROVALLOAN BALANCELOAN CONTRACTLOAN DECISIONLOAN DEMANDLOAN DOCUMENTATIONLOAN LOSSLOAN LOSS PROVISIONINGLOAN LOSSESLOAN PAYMENTSLOAN PORTFOLIOLOAN REPAYMENTLOAN SIZEMANDATEMARKET VALUEMATURITIESMATURITYMATURITY DATESMERGERSMINIMUM CAPITAL RATIONATURAL DISASTERSNET LOSSNET PROFITNEW CREDITOPERATING EXPENSESOPERATIONAL RISKSOUTSTANDING LOANOVERDUE LOANSPENALTIESPORTFOLIOPORTFOLIO DIVERSIFICATIONPORTFOLIOSPRINCIPAL REPAYMENTPROBLEM LOANSPROFITABILITYPRUDENTIAL STANDARDPRUDENTIAL STANDARDSREDEMPTIONREGULATORY FRAMEWORKREGULATORY RESTRICTIONSREGULATORY STANDARDSREHABILITATION PLANSREHABILITATION PROGRAMSREORGANIZATIONREORGANIZATION PROCEEDINGSREPAYMENT SCHEDULERESERVERESERVE FUNDRESERVE FUNDSRESERVE REQUIREMENTRESERVESRESTRICTIONS ON LOANSRETAINED EARNINGSRISK MANAGEMENTRISKY LOANSSAVINGSSAVINGS ACCOUNTSSAVINGS DEPOSITSSECURITIESSETTLEMENTSETTLEMENT SERVICESSETTLEMENTSSMALL LOANSSOLVENCYSOUND FINANCIAL FOOTINGSOUND FINANCIAL INSTITUTIONSSUPERVISORY AGENCYSUPERVISORY AUTHORITIESSUPERVISORY BOARDSUPERVISORY BOARDSSUPERVISORY FRAMEWORKSUPERVISORY POWERSSYSTEMIC STABILITYTERM DEPOSITSTITLETRANSACTIONTRANSPARENCYVALUATIONVALUATION OF COLLATERALVARIABLE INTEREST RATESWINDING UPWITHDRAWAL10.1596/17358