Transcript CREDIT UNIONS: REGULATORY TRENDS IN POLAND.
SUCCESS STORY OF THE POLISH CREDIT UNION MOVEMENT
How to reach 1 million Members in 12 years
Grzegorz Bierecki, President National Association of Cooperative Savings and Credit Unions
SUCCESS STORY OF THE POLISH CREDIT UNION MOVEMENT
7 Thoughts fundamental to Development of Credit Unions in Poland
1. Credit unions provide access to financial services to common people enabling them to meet their goals and improve their economic and social conditions 2. Credit unions are an integral part of Poland’s formal financial sector 3. Building financial systems for the less-affluent means creation of sound domestic financial intermediaries that can mobilize domestic savings. Capital from foreign donors and social investors will diminish as local financial institutions and markets mature
SUCCESS STORY OF THE POLISH CREDIT UNION MOVEMENT
7 Thoughts fundamental to Development of Credit Unions in Poland
4. 5. 6. 7. People need a diversified range of financial services matching their different needs Credit unions are market-oriented institutions. While their rates are among the lowest on the market, credit union operations are subject to market forces Credit unions are sustainable financial institutions relying only on their members The government’s role in development of credit unions is to create conditions for them to operate. Credit unions should be able to decide on what ? and how ?
POLISH CREDIT UNION SYSTEM
Key components :
Credit unions National Association of Cooperative Savings and Credit Unions Credit Union Mutual Insurance Society Credit Union Life Insurance Society „Asekuracja” Insurance Brokerage Co.
Credit Union Investment Funds Society Credit Union Financial Society „H and S” Software Co.
Foundation for Polish Credit Unions Higher School of Administration and Finance Credit Union Publishing House Society for Promotion of Financial Education Credit Union Arbitration
POLISH CREDIT UNION SYSTEM
Number of members 1992 - June 2004
1 100 000 1 000 000 900 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0 1992
14 137 21 325 46 178 85 200 137 958 194 000 258 739 305 699 394 449 525 055
1993 1994 1995 1996 1997 1998 1999 2000 2001
924 153 703 012 1 001 069 1 062 014
2002 2003 (interime) March 2004 June 2004
POLISH CREDIT UNION SYSTEM
Number of credit union outlets 1992 - June 2004
1 500 1 400 1 300 1 200 1 100 1 000 900 800 700 600 500 400 300 200 100 0 1992 13 1993 32 106 1994 1995 137 1996 168 237 1997 1998 290 1999 420 2000 560 680 2001 923 1 285 1 357 2002 2003 (interime) March 2004 1 400 June 2004
POLISH CREDIT UNION SYSTEM
Total assets (in PLN) 1992 - June 2004
3 686 482 167 3 519 760 656 3 800 000 000 3 600 000 000 3 400 000 000 3 200 000 000 3 000 000 000 2 800 000 000 2 600 000 000 2 400 000 000 2 200 000 000 2 000 000 000 1 800 000 000 1 600 000 000 1 400 000 000 1 200 000 000 1 000 000 000 800 000 000 600 000 000 400 000 000 200 000 000 0 11 173 130 4 277 499 1992 1993 1994 219 443 477 100 751 967 35 446 199 1995 1996 590 376 246 368 260 031 882 727 483 1997 1998 1999 2000 3 346 879 864 2 455 085 728 1 752 315 506 1 199 361 888 2001 2002 2003 (interime) March 2004 June 2004
POLISH CREDIT UNION SYSTEM
Total savings and loans 1992 - June 2004
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 (interime) March 2004 June 2004 3 600 000 000 3 000 000 000 2 400 000 000 1 800 000 000 1 200 000 000 600 000 000 0
POLISH CREDIT UNION SYSTEM
Typical products and services offered by Polish credit unions:
personal accounts term deposits savings accounts indyvidual share accounts loans and credits business services: accounts, credits and money transfers credit and debit cards payment settlements insurance services pension funds products
POLISH CREDIT UNION SYSTEM
National Association of Cooperative Savings and Credit Unions Key functions
: SUPERVISORY AND REGULATORY INSTITUTION FOR CREDIT UNIONS CREDIT UNION TRADE ASSOCIATION CREDIT UNION CENTRAL CREDIT UNION AUDIT UNION
POLISH CREDIT UNION SYSTEM
DEPOSIT PROTECTION PROGRAM Credit union level SECURITY AND SOLVENCY CAPITAL ADEQUACY QUALITY OF MANAGEMENT
POLISH CREDIT UNION SYSTEM
DEPOSIT PROTECTION PROGRAM System level MONITORING AND CONTROL PRUDENCIAL STANDARDS STANDARISATION STABILIZATION FUND DEPOSIT INSURANCE RESERVES
POLISH CREDIT UNION SYSTEM
Credit Union Mutual Insurance Society
provision of deposit insurance coverage provision of property and casualty insurance products to credit unions provision of a variety of insurance products to credit union members
POLISH CREDIT UNION SYSTEM
Credit Union Life Insurance Society
provision of life insurance products to credit union members: - credit life insurance - life savings insurance - funeral insurance - individual life insurance - individual life insurance with investment fund
POLISH CREDIT UNION SYSTEM
„Asekuracja” Insurance Brokerage Co.
provision of insurance brokerage services provision of credit services to credit union members via credit agents purchase of overdue liabilities serving credit collection
POLISH CREDIT UNION SYSTEM
Credit Union Investment Funds Society
investing of members’ savings into financial instruments available on the market through funds creation and management of funds
POLISH CREDIT UNION SYSTEM
Credit Union Financial Society
provision of long-term housing loans to credit union members provision of financing through leasing to credit union members
POLISH CREDIT UNION SYSTEM
„H and S” Software Co.
exclusive provider of software program to all credit unions, since 1992 development of software program corresponding with ongoing development of the credit unions, their operations and range of products and services
POLISH CREDIT UNION SYSTEM
Foundation for Polish Credit Unions
support of development of the credit union movement in Poland promotion of credit unions and financial cooperative principles training and education serving credit union needs support of credit union development in the region through direct technical and financial assistance (Ukraine, Lithuania, Latvia, Romania, Bulgaria and other countries)
POLISH CREDIT UNION SYSTEM
Higher School of Administration and Finance
provision of graduate and post-graduate courses in business, administration and finance to credit union executives and staff provision of specialist training tailored to specific needs of credit unions
POLISH CREDIT UNION SYSTEM
Credit Union Publishing House
Publications promoting credit unions and their philosophy „Money and Bond” Scientific Quaterly and other publications promoting economic education, understanding of sound business and financial management practices
POLISH CREDIT UNION SYSTEM
Society for Promotion of Financial Education
Promotion of financial education in the society Provision of legal and financial assistance including debt councelling to individuals through network of legal and financial advisory offices
POLISH CREDIT UNION SYSTEM
Credit Union Arbitration
settling extra-judicial disputes between credit union and its members regarding credit union services
SUCCESS STORY OF THE POLISH CREDIT UNION MOVEMENT
How to reach 1 million Members in 12 years
work hard
be persistent