KNF suspends SKOK Polska and files for bankruptcy

The Financial Supervision Authority (KNF) suspended the activity of SKOK Polska and filed a motion for the firm's bankruptcy in court. In a post on its website , the agency explained that this is due to the failing liquidity of the credit union. A special managing commissary was inserted as head of SKOK Polska in July 2015, tasked with creating a detailed report on the credit union's finances. It revealed that, in the summer of 2015, SKOK had a net worth of minus PLN 80.9 million and a capital adequacy ratio of minus 58.14 percent. The commissary also disclosed that the previous management of the credit union overestimated the value of certain firms owned by SKOK - the new estimate dropped their value from PLN 43.7 million to PLN 8.8 million. The KNF also revealed that the management of the Kasa Krajowa, the head board overseeing all of the SKOK unions, declined a request to provide emergency financial aid on February 16, 2016, leaving the KNF with no choice but to shut down SKOK Polska for the time being.