THE POLISH CREDIT UNIONS

Co-operative Credit Unions in Poland have existed since 1992 and are constantly extending their economic potential and their share in the financial services market. The CCUs have a status of a legal person. These banks are non-profit institutions which are created to implement the idea of mutual financial assistance. In order to use their services a potential client has to be a member of one of the CCUs. The members of the CCU can only be people living in the same area or having the same occupation or belonging to the same organization. CCUs offer their own members basic financial services: running a standard bank account, reception of deposits, provision of loans, clearing and settlement of accounts, sale of participation units in investment funds, handling of individual pension accounts, and sale of insurance policies and emission of payment cards. They can also run the accounts of civic associations and people involved in business activity. At the end of 2006 there were 70 credit unions in Poland which together possessed 1584 agencies providing services to their members. The CCUs enlarge their share in the national market of deposits and loans for households, but this share is still of a modest size. At the end of 2005 the assets of CCUs in relation to assets of the banking sector amounted to a mere 0.9%, while in relation to assets of cooperative banks which are their direct competitors, it amounted to 16.3%