Legal status and development trends of credit unions in polish law and its compliance with the WOCCU standards and the international cooperative principles

Abstract

The article presents the outline of credit unions' history in Poland, the credit unions' legal status in Polish law and the credit union's legal status as the European Cooperative Society (SCE). Conclusions driven from this analysis are compared with the World Council of Credit Unions (WOCCU) standards and the contents of the International Cooperative Principles. Also, the article discusses legal environment, government attitude and development trends of credit unions' in Poland. In conclusion, the de lege ferenda postulates regarding credit unions' regulation in Poland are presented. Credit unions in Poland conduct not for profit business activity only with their members with reservation to mediating in specific contracts on financial market which can be also conducted with nonmembers. Credit unions activity is subject to supervision of the Polish Financial Supervision Authority (FSA). Therefore credit unions regulation is characterized by duality of legal regime of private and administrative law. However, in certain fields of credit unions activity the FSA's supervision, performed under administrative legal regime, raises justified doubts in the light of the principle of cooperative autonomy as the FSA by law has the authority to impose specific orders and prohibitions on credit unions.