Position and Prospects of Polish Cooperative Banks

Position and Prospects of Polish Cooperative Banks

Ewa Miklaszewska*
Krzysztof Kil**
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models centered on operational efficiency accruing from new sources of profits
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for conducting banking activities, based on product synergies, scale and scope
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that in many cases benefits from diversification from traditional banking have
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failing banks, questions have been raised as to the proper size and scope of banking
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as credit unions, mutual savings banks, building societies or cooperative banks,
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Problems and Opinions
for years has played an important role in local environments, enhancing bank
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assistance aimed at stabilizing large banks, has created a hostile environment for
locally based banks.
2. THE %$1.,1*6(&725,132/$1'
7+(326,7,212)&223(5$7,9(%$1.6
3RODQG KDV D UHODWLYHO\ ORZ FRQFHQWUDWHG EDQNLQJ VHFWRU ZLWK D WUDGLWLRQDO
EDQN EXVLQHVV PRGHO )RUHLJQ FDSLWDO GRPLQDWHV EXW WKH 7UHDVXU\ LV DOVR DQ
LPSRUWDQWVKDUHKROGHU3ROLVKSULYDWHFDSLWDOGRPLQDWHVLQVPDOOHUEDQNVDQGLQ
the cooperative sector. 2YHUDOOWKH3ROLVKEDQNLQJVHFWRULQWKHSRVWFULVLVSHULRG
is characterized by good performance as well as by solid fundamentals, as indicated
LQ7DEOH
Table 1. Polish bank performance (%)
Sector
2013*
2012
2011
2010
2009
2013*
&,
2012
2011
2010
2009
2013*
ROE
2012
2011
2010
ROA
2009
Banks/
year
1.14 11.19 10.4 &RPPHUFLDO 1.10 1.17 10.19 11.19 49 49 &RRSHUDWLYH 1.19 70
'DWDIRU
6RXUFHRaport o sytuacji banków 2007–2011, 20128.1):DUV]DZDDQGInformacja
RbV\WXDFMLEDQNöZZRNUHVLH,ļ,;U8.1):DUV]DZD
6LQFH 3ROLVK FRRSHUDWLYH EDQNV KDYH XQGHUJRQH FRPSUHKHQVLYH
UHVWUXFWXULQJLQRUGHUWRDGDSWWRPDUNHWHFRQRP\UXOHVDQGODWHUWRDGMXVWWR(8
UHTXLUHPHQWV7KLVUHVWUXFWXULQJZDVSDLQIXOļtheir number has plummeted from
LQ WR MXVW WRGD\ 6]DPEHODQF]\N 2Q WKH ZKROH KRZHYHU
cooperative banks have benefited from the consolidation process and today serve
RYHUPLOOLRQFXVWRPHUVWKURXJKDFRXQWU\ZLGHQHWZRUNRIEUDQFKHV6LQFH
3RODQGijV DFFHVVLRQ WR WKH (XURSHDQ 8QLRQ FRRSHUDWLYH EDQNV KDYH EHFRPH DQ
LPSRUWDQWFKDQQHOWKURXJKZKLFKPRQH\IURPWKH&RPPRQ%XGJHWLVWUDQVIHUUHG
WRIDUPHUVDQGORFDODXWKRULWLHVQDWLRQDOO\6LXGHN 7RGD\FRRSHUDWLYHEDQNV
UHSUHVHQW RI WKH WRWDO QXPEHU RI EDQNV RI EDQN EUDQFKHV DQG RI
HPSOR\PHQWEXWRQO\RIWRWDOEDQNLQJDVVHWVILJb
51
Bezpieczny Bank
2(55)/2014
)LJXUH&RRSHUDWLYHEDQNVijPDUNHWVKDUHLQWRWDODVVHWV
7.50
6.86
7.00
6.50
6.36
6.17
6.08
6.05
2010
2011
5.84
6.00
5.43
5.50
5.00
4.50
4.00
2007
2008
2009
2012
2013
6RXUFHRZQFDOFXODWLRQVEDVHGRQ.1)GDWD
7KH\ DUH VPDOO ORFDOO\ EDVHG LQVWLWXWLRQV WKH PDMRULW\ DURXQG EDQNV
KDYH DVVHWV EHORZ b PLOOLRQ (XUR DQG RQO\ DUH UHODWLYHO\ ODUJH ZLWK DVVHWV
DERYH PLOOLRQ (XUR 7KH FRRSHUDWLYH VHFWRU IROORZV Db WZROHYHO PRGHO DQG LQ
WKHUHZHUHWZRFRRSHUDWLYHQHWZRUNVRQHKHDGHGE\%366$%DQN3ROVNLHM
6SöïG]LHOF]RĂFL 6$ ZLWK EDQNV DQRWKHU E\ 6*%%DQN 6SöïG]LHOF]D *UXSD
%DQNRZDZLWKEDQNVDQGRQHFRRSHUDWLYHEDQNZKLFKRSHUDWHGLQGHSHQGHQWO\
.UDNRZVNL %DQN 6SöïG]LHOF]\) 7KH PLVVLRQ RI FRRSHUDWLYH EDQNV LV WR VXSSRUW
WKHLUFXVWRPHUVDVZHOODVPHPEHUVRIORFDOFRPPXQLWLHVDVRSSRVHGWRWKHSURILW
PD[LPL]LQJ REMHFWLYHV RI FRPPHUFLDO EDQNV DOWKRXJK WKHLU LQWHUHVW PDUJLQ LV
KLJKHUWKDQWKDWRIFRPPHUFLDOEDQNVWDEb
Table 2. Net interest margin (net interest revenues /av. assets)
2007
2008
2009
2010
2011
2012
2013
Sector
&RPPHUFLDOEDQNV
&RRSHUDWLYHEDQNV
4,77
4,11
6RXUFHRZQFDOFXODWLRQVEDVHGRQ.1)GDWD
Among a number of locally active financial institutions, banking activities are
FRQGXFWHGDOVRE\XQUHJXODWHGWLOOFUHGLWXQLRQV6.2.V$OWKRXJK6.2.V
UHSUHVHQWRQO\RIWKHWRWDODVVHWVRIWKHEDQNLQJVHFWRU, they have grown at
DbUHPDUNDEOHUDWHVLQFHWKHLULPSOHPHQWDWLRQLQ6.2.VRSHUDWHDPRQJORZ
income individuals, especially those who do not have accounts with other banks. In
WKHUHZHUH6.2.VZLWKEUDQFKHVVHUYLQJRYHUbPLOOLRQFXVWRPHUV
RI3ROLVKKRXVHKROGV7KHLUDVVHWVLQ-XQHZHUHRYHUELOOLRQ86:%
7KH&UHGLW8QLRQ$FWRIGHILQHG6.2.VDVVHOIUHJXODWRU\RUJDQL]DWLRQV
52
Problems and Opinions
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RI LPSOHPHQWHG LQ 2FWREHU SURYLGHG IRU H[WHUQDO VXSHUYLVLRQ DQG
depositor protection, similar to the rest of the regulated banking institutions, both
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KDYHLQGLFDWHGWKDWPDQ\FXVWRPHUVGLGQRWGLIIHUHQWLDWHEHWZHHQVHOIUHJXODWHG
6.2.V DQG IXOO\ UHJXODWHG FRRSHUDWLYH DQG FRPPHUFLDO EDQNV .1)b E
3RODQGijVFRRSHUDWLYHEDQNVKDYHDOLPLWHGVFDOHDQGVFRSHRIRSHUDWLRQV$WWKH
HQGRIORDQVFRQVWLWXWHGRIWKHLUDVVHWVWRKRXVHKROGVDQGPLFUR
HQWHUSULVHV DQG WR ILUPV PRVWO\ 60(V IROORZHG E\ LQWHUEDQN ORDQV SODFHG LQ WKH DVVRFLDWLQJ EDQNV 7KH\ ILQDQFHG RI WKHLU DVVHWV E\ GHSRVLWV
PRVWO\IURPKRXVHKROGV7KHFULVLVFKDQJHGWKHLUVWUDWHJLHVJLYLQJLQFHQWLYHVIRU
PRYLQJLQWRPRUHULVN\VPDOOHQWHUSULVHILQDQFLQJWDEbWKHDUHDOHVVDWWUDFWLYH
for commercial banks.
7DEOH&KDQJHVLQORDQVWUXFWXUHRIFRPPHUFLDODQGFRRSHUDWLYHEDQNV
&RPPHUFLDOEDQNV
&RRSHUDWLYHEDQNV
2008
2010
2011
2008
2010
2011
Households
74.7
Firms
Local and central governments
4.9
2WKHUV
0.4
0.7
6RXUFH%)*
)LJXUH&RRSHUDWLYHDQGFRPPHUFLDOEDQNVSURILWDELOLW\
ROA
ROE
2.0%
25%
20
1.5
15
1.0
10
0.5
5
Cooperative Banks
Cooperative Banks
Commercial Banks
Commercial Banks
13
20
12
11
20
10
20
20
09
20
07
06
08
20
20
20
20
13
20
20
12
11
10
09
20
20
20
08
20
06
07
20
20
05
20
05
0
0
6RXUFH2ZQFDOFXODWLRQVEDVHGRQ.1)
53
Bezpieczny Bank
2(55)/2014
7KHFRRSHUDWLYHPRGHOKDVSHUIRUPHGZHOOLQWKHSRVWFULVLVSHULRGLQDQXPEHU
RIFRXQWULHV,Q3RODQGWKHFRRSHUDWLYHEDQNVDOWKRXJKOHVVSURILWDEOHLQWKHSUH
FULVLVERRPLQJ\HDUVKDYHDVLPLODUWLOOUHFHQWO\SRVWFULVLVSHUIRUPDQFHWRWKDW
RIFRPPHUFLDOEDQNVILJ+RZHYHUWKHFRRSHUDWLYHVHFWRULVQRWKRPRJHQRXV
there are small banks which struggle to maintain the required capital and large
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WKHSRVWFULVLVSHULRGLVFKDUDFWHUL]HGE\JRRGSHUIRUPDQFHDQGDQLPSRUWDQWUROH
LQORFDO60(ILQDQFLQJ
Similar conclusions can be drawn when analyzing the cooperative bank
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LQGH[LVEDVHGRQWKHYRODWLOLW\RIUHWXUQVDQGWKHODFNRIDGHTXDWHFDSLWDODVWKH
PDLQ VRXUFHV RI ULVN /RZQ HW DO DQG LV FDOFXODWHG DV WKH VXP RI HTXLW\
FDSLWDO WR DVVHWV UDWLR &$5 DQG UHWXUQ RQ DVVHWV UDWLR 52$ GLYLGHG E\ WKH
VWDQGDUGGHYLDWLRQRI52$7KXVWKHYDOXHRIWKH=6FRUHLVGHWHUPLQHGE\WKHOHYHO
of capitalization and by the level and stability of profits, and can be interpreted as
WKHGLVWDQFHIURPDGHIDXOWPHDVXUHGE\WKHVWDQGDUGGHYLDWLRQRISURILWV$bKLJK
OHYHO LQ WKH =6FRUH GHQRWHV EDQN VWDELOLW\ ZKLFK PHDQV LW KDV HQRXJK HTXLW\
capital to cover potential losses.
ZļScoret =
ROAt + CARt
ıROA
ROAt, CARtļ5HWXUQRQ$VVHWVDQG&DSLWDOWR$VVHWV5DWLRIRU\HDUt
ıROAļVWDQGDUGGHYLDWLRQ
7KH FULVLV UHVXOWHG LQ D ORZHULQJ RI WKH =VFRUH LQGH[ IRU WKH HQWLUH
EDQNLQJVHFWRUEXWPRUHSURIRXQGO\IRUWKHFRPPHUFLDOEDQNVILJb$&KDQJHV
LQWKH=VFRUHLQGH[IRUWKHFRRSHUDWLYHEDQNLQJVHFWRUZHUHOHVVGUDPDWLFDQGWKH
values were higher than for commercial banks, demonstrating their stable position
throughout the crisis. However, as fig.b%GHPRQVWUDWHVIRU\HDUZLQGRZVWKLV
ZDVDVKRUWWHUPDGYDQWDJHDQGLQļWKHVLWXDWLRQVWDUWHGWRUHYHUVH
:KHQDQDO\]LQJWKHVXEJURXSVZLWKLQWKHFRRSHUDWLYHEDQNLQJVHFWRUGLYLGHG
according to the asset size, we can observe that the smallest banks are the safest
ILJb
$PRQJ FRRSHUDWLYH VXEJURXSV WKH ODUJHVW EDQNV KDYH D ORZ 52$ EXW WKH
KLJKHVW52(DQGWKHVPDOOHVWEDQNVMXVWWKHRSSRVLWHLQGLFDWLQJWKDWVL]HPDWWHUV
LQ EXVLQHVV GHFLVLRQV DQG SURILWDELOLW\ LQGLFDWRUV ILJb )RU ODUJH FRRSHUDWLYH
EDQNVDVVHWVRYHUP3/1WKHFULVLV\HDUVWXUQHGRXWWREHWKHPRVWSURILWDEOH
WKDQNVWRUHWDNLQJVRPHEXVLQHVVDQGFXVWRPHUVIURPFRPPHUFLDOEDQNV2YHUDOO
WKH 3ROLVK FRRSHUDWLYH VHFWRU LQ WKH SRVWFULVLV SHULRG LV FKDUDFWHUL]HG E\ JRRG
54
Problems and Opinions
SHUIRUPDQFH DQG LPSRUWDQW UROH LQ ORFDO 60( ILQDQFLQJ DOWKRXJK ZLWK VRPH
challenges ahead.
Figure 3A. Z-score for commercial and cooperative banks in 5-year rolling
windows
100
80
60
40
20
0
2005–2009
2006–2010
2007–2011
2008–2012
Cooperative Banks
2009–2013
Commercial Banks
6RXUFH2ZQFDOFXODWLRQVEDVHGRQ.1)
Figure 3B. Z-score for commercial and cooperative banks in 3-year rolling
windows
350
300
250
200
150
100
50
0
2005–2007
2006–2008
2007–2009
2008–2010
Cooperative Banks
2009–2011
2010–2012
2011–2013
Commercial Banks
6RXUFH2ZQFDOFXODWLRQVEDVHGRQ.1)
Figure 4. Z-score for subgroups of cooperative banks
120
100
80
60
40
20
0
below 25
25–50
2005–2009
50–100
2006–2010
100–150
2007–2011
150–200
over 200 m
2008–2012
6RXUFH2ZQFDOFXODWLRQVEDVHGRQGDWDVHWREWDLQHGIURP.1)
55
Bezpieczny Bank
2(55)/2014
)LJXUH&RRSHUDWLYHEDQNVSURILWDELOLW\FRPSDULVRQZLWKLQWKHVHFWRU
ROA
ROE
2.2%
25%
2.0
20
1.8
1.6
15
1.4
10
1.2
5
1.0
20
12
11
20
20
10
09
20
20
08
07
20
20
06
20
20
12
11
20
20
10
8
09
20
20
0
07
20
20
06
05
20
05
0
0.8
below 25 m
25–50 m
below 25 m
25–50 m
50–100 m
100–150 m
50–100 m
100–150 m
150–200 m
over 200 m
150–200 m
over 200 m
6RXUFH2ZQFDOFXODWLRQVEDVHGRQGDWDVHWREWDLQHGIURP.1)
3. 7+(&+$//(1*(6727+(&223(5$7,9(%$1.,1*02'(/
7KH(XURSHDQ$VVRFLDWLRQRI&RRSHUDWLYH%DQNVKDVpinpointed the following
NH\ FRRSHUDWLYH YDOXHV 2OLYHU :\PDQ WUXVW JRYHUQDQFH UHVLOLHQFH
DGDSWLQJWRFKDQJLQJFLUFXPVWDQFHVSUR[LPLW\WRFXVWRPHUVVRFLDOFRPPLWPHQW
VXSSRUWLQJ ORFDO FXVWRPHUV DQG VROLGDULW\ LH UHLQYHVWLQJ FDSLWDO DW WKH ORFDO
OHYHO7KHILQDQFLDOFULVLVRIļVWUHVVHGWKHLULPSRUWDQFHWKURXJKRXWWKH
FULVLV ORFDO EDQNV LQ PDQ\ (XURSHDQ FRXQWULHV KDG D VXSHULRU SHUIRUPDQFH WKH
ELJEDQNV$\DGLHWDO7KXVDQRWKHUFKDOOHQJHIRUWKHFRRSHUDWLYHVHFWRU
is not to lose identity in the form of operational independence and regional focus.
&RRSHUDWLYHEDQNVLQ(XURSHIRUPDPL[RIGLIIHUHQWEXVLQHVVDQGDVVRFLDWLQJ
QHWZRUNPRGHOVDQGJRYHUQDQFHVWUXFWXUH'HVSLWHGLIIHUHQWRUJDQLVDWLRQDODQG
RZQHUVKLSVWUXFWXUHVWKH\DUHZHOOLQWHJUDWHGDQGFRPSOHPHQWDU\WRWKH(XURSHDQ
FRPPHUFLDO EDQNLQJ VHFWRU &RRSHUDWLYH EDQN JRYHUQDQFH PRGHOV UDQJH IURP
Db FHQWUDOL]HG RQH ZKHUH PHPEHU EDQNV KDYH GHOHJDWHG VLJQLILFDQW VXSHUYLVRU\
DQGGHFLVLRQWDNLQJSRZHUWRDFHQWUDOHQWLW\VXFKDVWKH5DEREDQNPRGHODQGRQ
WKHRWKHUH[WUHPHDQHWZRUNPRGHOZKHUHDFHQWUDOHQWLW\SURYLGHVVXSSRUWDQG
has an advisory role, but the decision making power rests with the member banks,
VXFKDVLQWKH3ROLVKFRRSHUDWLYHQHWZRUNV2OLYHU:\PDQ,QWKHOLJKWRI
WKH UHFHQW OLTXLGLW\ UHJXODWLRQ &5' ,9 DQ LPSRUWDQW IHDWXUH LV DOVR WKH OHYHO
of network cooperation between local, regional and central institutions. In some
56
Problems and Opinions
FRXQWULHVQHWZRUNVKDYHHYROYHGLQWRODUJHFRPSOH[FRQJORPHUDWHVZLWKDbVWURQJ
reliance on a central institution In networks with less formal organizational
VWUXFWXUHV VXFK DV WKH 3ROLVK RQH WKHUH LV D SRWHQWLDO DUHD RI FRQIOLFW EHWZHHQ
WKHERWWRPXSRZQHUVKLSDQGWRSGRZQDXWKRULW\DVJURZLQJFHQWUDOL]DWLRQPD\
worsen cooperative banks’ identity and mission. In general, the Italian and Spanish
PRGHOVDUHFRQVLGHUHGOHVVFHQWUDOL]HGWKDWWKH$XVWULDQ*HUPDQ'XWFK)LQQLVK
DQG)UHQFKRQHV$\DGLHWDOS
,QWKHGHFHQWUDOL]HGFRRSHUDWLYHQHWZRUNPRGHOLQWUDJURXSSURWHFWLRQVFKHPHV
are advocated as a key factor in ensuring the overall resilience of cooperative
JURXSV3URWHFWLRQVFKHPHVDUHDGPLQLVWHUHGE\DFHQWUDOERG\ZKLFKDFWVDVDQ
RYHUVHHU 7KH &DSLWDO 5HTXLUHPHQWV 'LUHFWLYH (& DFFHSWV FRRSHUDWLYH
QHWZRUNVDVĴ,QVWLWXWLRQDO3URWHFWLRQ6FKHPHVĵ,36LIWKH\KDYHDPXWXDOVXSSRUW
system. In this case, the network central institution may intermediate liquidity
ZLWKLQ WKH QHWZRUN IXOILOOLQJ WKH 'LUHFWLYHijV OLTXLGLW\ UHTXLUHPHQWV DVVLJQLQJ
D ]HUR ZHLJKW IRU LQWUDQHWZRUN H[SRVXUHV 7KLV RUJDQLVDWLRQDO LQQRYDWLRQ LV
intended to ensure the solvency and liquidity of a group of affiliated institutions
%,6 ,Wb HQWDLOV DOO SDUWLFLSDQWV UHOLQTXLVKLQJ WR WKH FHQWUDO ERG\ RI WKH
,36 WKH FDSDFLW\ WR GHWHUPLQH DQG LPSOHPHQW EXVLQHVV VWUDWHJLHV DQG LQWHUQDO
ULVNFRQWURO7KHVHFRQGSLOODUFRPSULVHVWKHPXWXDOOLTXLGLW\DQGVROYHQF\SDFWV
between the participating cooperative banks and the third pillar is a commitment
to the stability of the agreements. 7KHVHLQWUDJURXSSURWHFWLRQVFKHPHV,36DUH
advocated as a key factor in ensuring the overall resilience of cooperative groups,
although they bring a significant degree of centralization and tighter cooperation
within a group of affiliating banks. 7KHHYROXWLRQRIWKHQHWZRUNVWUXFWXUHLVWKXV
DQLPSRUWDQWFKDOOHQJHIRUWKH3ROLVKFRRSHUDWLYHEDQNV
4. 7+(&+$//(1*(6)2532/,6+&223(5$7,9(%$1.6
7+(b5(68/762)$%$1.6859(<
$UHSRUWE\2OLYHU:\PDQEDVHGRQDFRRSHUDWLYHEDQNJOREDOVXUYH\2OLYHU
:\PDQ 5HSRUW LQGLFDWHG NH\ VXFFHVV IDFWRUV IRU FRRSHUDWLYH EDQNV VXFK
as efficiency, customer satisfaction and proper handling of regulations. A similar
cooperative bank survey was coaducted by the authors in the early months of
ZLWK WKH DLP RI DQDO\]LQJ KRZ WKH 3ROLVK FRRSHUDWLYH EDQNV XQGHUVWDQG
WKH FKDOOHQJHV DKHDG 7KH NH\ DQVZHUV DUH DQDO\]HG EHORZ IRU WKH WRWDO JURXS
b EDQNV DQG IRU VXEVHFWLRQV RI VPDOO DVVHWV OHVV WKDQ P 3/1 and large
DVVHWVDERYHP3/1 cooperative banks.
%RWKIRUWKH3ROLVKFRRSHUDWLYHEDQNVDQGJOREDOO\WKHLPSOHPHQWDWLRQRISRVW
crisis regulations will impose considerable new costs concerning the quality of
capital, higher capital requirements, the introduction of a leverage ratio and new
57
Bezpieczny Bank
2(55)/2014
OLTXLGLW\VWDQGDUGV0F.LQVH\,Q3RODQGWKHELJJHVWSUREOHPZLOOEHZLWK
WKHLPSOHPHQWDWLRQRI&5',9OLTXLGLW\UHTXLUHPHQWVSDUWLFXODUO\IRUWKHFHQWUDO
DVVRFLDWLQJEDQNVILJ Figure 6. Major risks for the cooperative banks
44.62%
credit risk, connected with macroeconomic
deterioration
36.92%
liquidity risk, connected with the implementation
of CRD IV
18.46%
operating risk, connected with the necessity to change
the business model of cooperative banking
0.00%
other
0
10
all banks
20
large banks
30
40
50%
small banks
6RXUFH2ZQUHVHDUFKFRRSHUDWLYHEDQNVXUYH\
,QWKH3ROLVKWZROHYHOFRRSHUDWLYHVHFWRUPRGHOWKHVXERUGLQDWHGFRRSHUDWLYH
EDQNVKDYHH[FHVVOLTXLGLW\IURPORFDOGHSRVLWVZKLFKWKH\SODFHLQWKHDVVRFLDWLQJ
EDQNV DQG RI WKHLU QHW LQWHUHVW LQFRPH FRPHV IURP LQWHUEDQN DFWLYLWLHV
However, those transactions are treated as interbank transactions and do not
count as required liquidity for associating banks. Moreover, interbank deposits
DUHQRWDFFHSWHGLQWKH&5',9OLTXLGLW\UHTXLUHPHQWV,IDVVRFLDWLQJEDQNVVWDUW
to take deposits directly from the market, they will be in direct competition with
WKHVXERUGLQDWHGEDQNVWKHUHE\ULVNLQJSUREOHPVZLWKWKHLURZQHUV,QWKH3ROLVK
model, associating banks coordinate and control subordinated banks, but at the
same time are owned by them, which sometimes creates a stalemate.
7KHUHJXODWRU\ERG\.1)KDVVXJJHVWHGDFRPSURPLVHE\LPSOHPHQWLQJWKH
,QGLYLGXDO3URWHFWLRQ6FKHPH,36ZKLFKLVDOVRDGYRFDWHGE\WKH(8+RZHYHU
WKHUHLVDFRQVLGHUDEOHUHVLVWDQFHDPRQJPRVW3ROLVKFRRSHUDWLYHEDQNVWRJLYLQJ
XSWKHLULQGHSHQGHQFHDQGWKHVFKHPHLVLPPHQVHO\XQSRSXODUILJb
So far, it has not been the intention of the regulatory authorities to interfere directly
ZLWKWKHFRRSHUDWLYHEDQNLQJVWUXFWXUHDVZDVGRQHLQWKHDQG+RZHYHU
some actions could be advisable. Regulatory intervention may be aimed either at
VWUHQJWKHQLQJWKHSRVLWLRQRIĴPRWKHUEDQNVĵIRUFRRSHUDWLYHJURXSVRUDWHQFRXUDJLQJ
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for small cooperative banks. However, these options have also been immensely
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Problems and Opinions
Figure 7. The attitude of cooperative banks to the IPS scheme
53.23%
inadequate, reducing independence
of cooperative banks, and should be
abandoned
38.71%
inadequate, but should be implemented
because of lack of alternatives
8.06%
adequate and should be implemented
0
10
20
all banks
30
40
50
large banks
60%
small banks
6RXUFH2ZQUHVHDUFKFRRSHUDWLYHEDQNVXUYH\
Figure 8. The optimal position of the largest cooperative banks
77.05%
operate independently within
a cooperative structure
19.67%
be the leaders of a consolidation
of smaller coop banks
3.28%
demutualise
0
20
all banks
40
large banks
60
80
100%
small banks
6RXUFH2ZQUHVHDUFKFRRSHUDWLYHEDQNVXUYH\
In the strategic part of the survey, cooperative banks seemed to be ready to gain
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LQFUHDVHLQRSHUDWLRQDOHIILFLHQF\ILJb2QWKHRWKHUKDQGWKH\GLGQRWVHQVH
any fundamental change in their market position, as in the survey the majority
of banks indicated that the cooperative banking share will increase in the long
UXQRQO\PDUJLQDOO\WR'HHSNQRZOHGJHRIWKHORFDOPDUNHWDQGRSHUDWLRQDO
IOH[LELOLW\ZHUHLQGLFDWHGILJbDVPDMRUDGYDQWDJHVRIWKHFRRSHUDWLYHPRGHO
59
Bezpieczny Bank
2(55)/2014
)LJXUH&RRSHUDWLYHEDQNVijSULRULWLHV
35.92%
increasing market share
30.99%
increase of profitability
20.42%
decrease of costs
8.45%
keeping employment
2.82%
increasing the number of members
1.41%
increase of profit sharing (dividend)
0
10
20
all banks
30
large banks
40%
small banks
6RXUFH2ZQUHVHDUFKFRRSHUDWLYHEDQNVXUYH\
Figure 10. Main advantages of the cooperative model
52.63%
knowledge of the local market
35.53%
operational flexibility
9.21%
stable depository base
2.63%
other
0
10
20
all banks
30
40
large banks
60
60
70
80%
small banks
6RXUFH2ZQUHVHDUFKFRRSHUDWLYHEDQNVXUYH\
5. &21&/86,216
7KHILQDQFLDOFULVLVKDVKLJKOLJKWHGWKHDGYDQWDJHVRIDOWHUQDWLYHEXVLQHVVPRGHOV
RIEDQNVDLPHGQRWRQO\DWPD[LPL]LQJVKRUWWHUPSURILWVEXWDWWKHIXOILOOPHQW
of some social objectives. In particular, the crisis has stressed the important role
DQGSRVLWLRQRIFRRSHUDWLYHEDQNLQJ&RQVHTXHQWO\WKHUHLVDJURZLQJUHFRJQLWLRQ
that an important factor for the construction of a healthy banking system is the
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60
Problems and Opinions
FRUSRUDWLRQVLPSRVLQJVWDQGDUGVDQGWHFKQRORJLFDOSURJUHVVDQGDbFRPSOHPHQWDU\
role played by local and specialized banks, based on relationship banking.
7KH FRRSHUDWLYH PRGHO KDV SHUIRUPHG ZHOO LQ WKH SRVW FULVLV SHULRG LQ
DbQXPEHURIRWKHUFRXQWULHV+RZHYHUWKHLPSOHPHQWDWLRQRISRVWFULVLVUHJXODWLRQV
will impose new considerable costs, concerning the quality of capital, higher capital
requirements, the introduction of a leverage ratio and new liquidity standards
0F.LQVH\ 7he data presented in the paper supports this assertion. 7KH
3ROLVKFRRSHUDWLYHEDQNVZLWKWKHLUWUDGLWLRQDOEXVLQHVVPRGHOKDYHFRPHRXWRI
WKHFULVLV ZLWK D KLJK =VFRUHDQGVDWLVIDFWRU\SURILWDELOLW\+RZHYHUWKHVH
ZHUH VKRUWWHUP DGYDQWDJHV 7RGD\ WKH\ IDFH D QHFHVVLW\ WR UHVWUXFWXUH WKHLU
network model and devise new strategies to answer the new challenges ahead.
Abstract
7KHJOREDOILQDQFLDOFULVLVRIKLJKOLJKWHGWKHULVNLQHVVRIWKHSUHFULVLVEDQN
model and demonstrated that in many cases the benefits of diversification from
WUDGLWLRQDOEDQNLQJKDYHEHHQRYHUVWDWHG:LWKFRXQWOHVVFDVHVRIQDWLRQDOL]DWLRQ
or forced takeovers of failing banks, questions have been raised as to the proper
VL]HDQGVFRSHRIEDQNLQJDFWLYLWLHV5HWDLOEDQNLQJFDUULHGRXWE\ORFDOO\EDVHG
small institutions, such as credit unions, mutual savings banks, building societies
or cooperative banks, has for years played an important role in local environments,
HQKDQFLQJ EDQN UHSXWDWLRQ DQG WUXVW 7KH ILQDQFLDO FULVLV KDV KLJKOLJKWHG WKH
DGYDQWDJHVRIDOWHUQDWLYHEXVLQHVVPRGHOVRIEDQNVDLPHGQRWRQO\DWPD[LPL]LQJ
VKRUWWHUPSURILWVEXWDOVRDWWKHIXOILOOPHQWRIVRPHVRFLDOREMHFWLYHVWKXVWKHDLP
of the paper is to analyze the position and challenges for the cooperative banking
VHFWRUEDVHGRQWKH3ROLVKH[SHULHQFH
Key words:3ROLVKFRRSHUDWLYHEDQNVEDQNEXVLQHVVPRGHO
References
$OOHQ)%DFN7&DUOHWWL(/DQH356FKRHQPDNHU'DQG:DJQHU:Crossborder banking in Europe: Implications for financial stability and macroeconomic
policies/RQGRQ&(35
$\DGL 5 /OHZHOO\Q '7 6FKPLGW 5+ $UEDN ( DQG 'H *URHQ :3 Investigating Diversity in the Banking Sector in Europe: Key Developments,
Performance and Role of Cooperative Banks%UXVVHOV&(35
%)* -3UXVNL6\WXDFMDILQDQVRZDVHNWRUDEDQNöZVSöïG]LHOF]\FKZ3ROVFHwww.
EIJSOVLWHVGHIDXOWILOHVGRNXPHQW\IRUXPOLGHURZEVSGI
61
Bezpieczny Bank
2(55)/2014
%,6The Basel Committee’s response to the financial crisis. Report to the G20,
%DVHOKWWSHFHXURSDHXLQWHUQDOBPDUNHWFRQVXOWDWLRQVILQBVXSHUYLVLRQBPD\
en.htm.
&(%6$QQXDO5HSRUWZZZHEDHXURSDHX
'HPLUJđÎ.XQW$DQG+XL]LQJD+Bank activity and funding strategies: The
impact on risk and return &(35 'LVFXVVLRQ 3DSHU /RQGRQ ZZZFHSURUJ
SXEVGSV'3DVSDVS
($&%The Annual Report, www.eurocoopbanks.coop.
(8&RPPLVVLRQCommission proposes new ECB powers for banking supervision
as part of a banking unionKWWSHFHXURSDHXLQWHUQDOBPDUNHWILQDQFHVFRPPLWWHHV
LQGH[BHQKWP
.1)Raport o sytuacji banków w 2007–20118.1):DUV]DZD
.1)EZaufanie do wybranych instytucji sektora finansowego0DUFK
KWWSZZZNQIJRYSO,PDJHVPDWHULDOBSUDVRZ\B3HQWRUBGODB.1)BWFPSGI
.1) Raport o sytuacji banków w 2012 r8.1):DUV]DZD
.1) ,QIRUPDFMD R V\WXDFML EDQNöZ Z RNUHVLH ,ļ,; U 8.1) :DUV]DZD
.1)5DSRUWRV\WXDFMLVSöïG]LHOF]\FKNDVRV]F]ÚGQRĂFLRZRNUHG\WRZ\FKZ
roku, 8.1):DUV]DZD
.30*)HEEvolving Banking Regulation, www.kpmg.com.
/RZQ & 2VOHU & 6WUDJDQ 3 DQG 6XIL $ The changing landscape of the
financial services industry: What lies ahead?)5%1<(FRQRPLF3ROLF\5HYLHZ
Mc Kinsey McKinsey on Cooperatives.
2OLYHU:\PDQ5HSRUW0F&DUUROO9+DEEHUILHOG6 The outlook for co-operative
banking in Europe, www.oliverwyman.com.
5DEREDQN The European banking sector and the co-operative banks, January,
www.rabobank.com.
6LXGHN7Polish cooperative banking sector in the face of systemic transformation
and European integration in agriculture’$JULFXOWXUDO(FRQRPLFVQR
6]DPEHODñF]\N-%DQNLVSöïG]LHOF]HZ3ROVFHZSURFHVDFK]PLDQV\VWHPRZ\FK,
:\G$(Z3R]QDQLX3R]QDñ
7KH :RUOG %DQN Credit Unions in Poland: Diagnostic and Proposals on
Regulation and Supervision,5HSRUW1R'HFHPEHU
62
Problems and Opinions
APPENDIX
&RRSHUDWLYHEDQNVXUYH\VHOHFWHGDQVZHUVLQ
Largest
Smallest
All
banks:
banks: assets
banks
assets above
less than
(62)
bPb3/1
bP3/1
1. The current model of cooperative banking is:b
stable in the short run
stable in the long run
needs urgent modification
2. Large cooperative banks (capital above 5 m Euro) should ultimately:
operate independently within
WKHbFRRSHUDWLYHVWUXFWXUH
demutualise
be leaders of consolidation of smaller coop
banks
should be stronger
should remain as today
should be modified
3. The powers of associating banks:
,QWKHORQJUXQFRRSHUDWLYHEDQNLQJVKDUHZLOOEHDVRIWRWDODVVHWV
DVWRGD\ļ
LQFUHDVHVOLJKWO\WR
credit risk, connected with macroeconomic
deterioration
operating risk, connected with necessity
to change business model of cooperative
banking
liquidity risk, connected with
WKHbLPSOHPHQWDWLRQRI&5',9
LQFUHDVHTXLWHGUDPDWLFDOO\WR
5. ,QWKH67WKHPDMRUULVNVDUH
63
Bezpieczny Bank
2(55)/2014
Smallest
Largest
All
banks: assets
banks:
banks
less than
assets above
(62)
bP3/1
bPb3/1
7KHUHJXODWRU\SURSRVDOWRGHDOZLWK&5',9LPSOHPHQWDWLRQLV,36
(Institutional Protection Scheme). This proposal is:
adequate and should be implemented
inadequate, reducing independence
of cooperative banks, and should be
abandoned
inadequate, but should be implemented
because of lack of alternatives
knowledge of local market
RSHUDWLRQDOIOH[LELOLW\
LQFUHDVHRISURILWVKDULQJGLYLGHQG
increase of profitability
decrease of costs
LQFUHDVHRISURILWVKDULQJGLYLGHQG
increase of profitability
decrease of costs
increasing market share
increasing the number of members
EHORZP]ï
100%
ļP]ï
DERYHP]ï
7. The main advantage of cooperative model is:
stable depository base
other
8. ST bank priorities are:
keeping employment
9. LT bank priorities are (indicate 3):
maintaining employment
Size of assets
6RXUFH2ZQUHVHDUFK
64