DOI: https://doi.org/10.18371/fcaptp.v1i28.163681

CORPORATE GOVERNANCE IN THE COOPERATIVE BANKING SECTOR IN POLAND

Agnieszka Alinska, Anna Szelagowska

Abstract


The corporate governance principles in the cooperative banking play crucial role in complementing institutional supervision and supporting internal controls. This paper discusses the selected issues of corporate governance in the cooperative banking sector in Poland. It outlines the contemporary challenges of corporate governance principles in the Polish cooperative banking sector related to external and internal supervision of banking activity. In addition, this paper aims to answer the question whether and to what extent the Polish cooperative banks have adopted the recommendation of the Polish Financial Supervisory Authority with regard to corporate governance in the banking sector and the extent to which internal rules for the organization of these banks affect the efficiency and effectiveness of the market. As a result, the following hypothesis was put forward: implementation of the corporate governance principles in the Polish cooperative banks has not contributed significantly to the improvement of their efficiency and has not enhanced the institutional supervision and internal controls in the cooperative banks. According to the authors, despite the existence of corporate governance principles in all Polish cooperative banks, there is still problem with the effectiveness of these institutions. Cooperative banks in Poland have experienced the phase of lethargy since 2013 and reported weaker and weaker financial results. Having in mind the fact that in 2015, that is after 14 years of stability in the sector, one of the Polish largest cooperative banks, SK-Bank, got bankruptcy, nobody predicted this event. It concludes that when it comes to the corporate governance principles the management bodies, regulators as well as supervisors require more effectively cooperation. The results in this paper confirmed that the model of credit cooperative movement adopted in Poland requires implementation of a couple of basic changes that are directly related to the utilization of the principles of a good corporate governance. The current corporate governance rules in Polish cooperative banks lead to having standardised governance without any substantial improvements and promoting better governance.


Keywords


corporate governance; cooperative banks; bank ownership structure.

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References


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GOST Style Citations


Alińska A. Determinants of stability and development of the cooperative banking sector in Poland [Electronic resource] / A. Alińska, A. Szelągowska // Eurices. — 2015. — Available at: http://www.euricse.eu/wp-content/uploads/2015/09/Alinska-Szel%C4%85gowska.pdf.

Aluchna M. Własność a corporate governence. Systemy, rynki, przedsiębiorstwa [Text] / M. Aluchna. — Warszawa : Poltext, 2015.

Basel Committee on Banking Supervision. Enhancing corporate governance for banking organizations [Electronic resource] // BIS. — 2006. — Available at: http://www.bis.org/publ/bcbs122.pdf.

Cioch H. Prawo spółdzielcze [Text] / H. Cioch. — Warszawa : Wolters Kluwer Polska, 2011.

Desrochers M. The Power of Networks: Integration and Financial Cooperative Performance [Text] / M. Desrochers, K. Fischer // Annals of Public and Cooperative Economics. — 2005. — № 76 (3). — P. 307—354.

Corporate governance in financial institutions and remuneration policies. GREEN PAPER. COM(2010) 285 final 2010 [Electronic resource] / European Comission. — 2010. — Available at: https://publications.europa.eu/en/publication-detail/-/publication/1788e830-b050-447c-8214-77ed51b13241.

Ferri G. Credit Cooperatives: Challenges and Opportunities in the New Global Scenario [Text] / G. Ferri // Euricse Working Paper. — 2012.— № 031/12.

Fonteyne W. Cooperative banks in Europe. Policy issues [Text] / W. Fonteyne // IMF Working Paper. — 2007. — № 159 (July).

Groeneveld J. M. The value of European Cooperative banks for the future financial system [Electronic resource] / J. M. Groeneveld. — 2011. — Available at: http://www.helsinki.fi/ruralia/ica2011/presentations/Groeneveld.pdf.

Groeneveld J. M. Governance of European Cooperative Banks [Text] / J. M. Groeneveld // TIAS, Working Paper. — 2015. — September.

Groeneveld J. M. Corporate governance in cooperative banks [Electronic resource] / J. M. Groeneveld, D. T. Llewellyn ; The Powerful Differentiators of Cooperative Banks, Working Paper Rabobank Nederland, Utrecht, the Netherlands // Eurices. — Available at: http://www.euricse.eu/sites/euricse.eu/files/db_uploads/documents/1312207746_n1751.pdf.

Hajos-Iwańska A. Zasady ładu korporacyjnego dla instytucji nadzorowanych KNF — krok w kierunku budowy zunifikowanych zasad corporate governance sektora finansowego czy zbędne superfluum [Text] / A. Hajos-Iwańska, W. Rogowski (red.) // Polityka i praktyka regulacji rynków finansowych. — Warszawa : Instytut Allerhanda, 2016.

Jeżak J. Corporate governance jako nowy obszar wiedzy i praktyki biznesowej [Electronic resource] / J. Jeżak, A. Samborski (red.) // Governance – korporacje, instytucje publiczne i sieci / Studia Ekonomiczne Uniwersytetu Ekonomicznego w Katowicach. — 2013. — № 141. — Available at: http://cejsh.icm.edu.pl/cejsh/element/bwmeta1.element.desklight-eab09acb-91e3-4f6c-8273-be8c259f6267/c/2_J.Jezak_Corporate_governance_jako_nowy_obszar_wiedzy.pdf.

Zasady ładu korporacyjnego dla instytucji nadzorowanych [Electronic resource] / Komisja Nadzoru Finansowego. — Warszawa, 2014. — Available at: https://www.knf.gov.pl/Images/Zasady_ladu_korporacyjnego_22072014_tcm75-38575.pdf.

Moroua B. The Impact of The Multi-Stakeholders Governance On The Performance of Cooperative Banks: Evidence of European Cooperative Banks, Procedia [Text] / B. Moroua // Social and Behavioral Sciences. — 2015. — № 195. — P. 713—720.

Sablik S. Nadzór właścicielski w polskim systemie bankowym [Electronic resource] / S. Sablik. — 2014. — Available at: http://www.ue.katowice.pl/fileadmin/user_upload/wydawnictwo/SE_Archiwalne/SE_38/14.pdf.

Szelągowska A. Polska bankowość spółdzielcza — wczoraj, dziś i jutro / A. Szelągowska. — 2011.

Współczesna bankowość spółdzielcza / A. Szelągowska (red.). — Warszawa : CeDeWu.





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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770