SKOK "Wspólnota" files for bankruptcy

Cooperative credit union SKOK "Wspólnota" filed for bankruptcy after the Financial Supervision Authority (KNF) made a decision to cease the cooperative banker’s operations due to its poor financial well-being and an increasing dependence on outsourcing, according to an ISBnews release.

SKOK “Wspólnota” is consistently in the red in its lending practices and has had a negative equity balance since 2008. According to the KNF, no liable candidate was found for acquisition of the failing credit union. Rescue measures initiated by the KNF have not yielded results. Cooperative credit unions have been under KNF’s regulatory jurisdiction since 2012. Due to the bankruptcy, the Bank Guarantee Fund (BFG) will disburse guaranteed deposits to depositors. Each depositor is insured by the BFG for a maximum amount equal to €100,000.