Capital Adequacy as a Measure of Safety of Activity of Cooperative Savings and Credit Unions Cover Image

Adekwatność kapitałowa jako miara bezpieczeństwa działalności spółdzielczych kas oszczędnościowo- -kredytowych
Capital Adequacy as a Measure of Safety of Activity of Cooperative Savings and Credit Unions

Author(s): Maria Magdalena Golec
Subject(s): Business Economy / Management, Accounting - Business Administration, Business Ethics
Published by: Społeczna Akademia Nauk
Keywords: cooperative savings and credit unions; credit unions; capital adequacy ratio; financial stability

Summary/Abstract: The purpose of the article was to analyze the capital adequacy of credit unions, the measures of the capital adequacy before and after the reform, the evaluation of actual financial situation of the credit unions and the calculation of the potential growth path of the credit union sector. The measure of capital adequacy in credit unions is the capital adequacy ratio, initially designated as the capital ratio, but later in his construction included business risks. Given the credit unions reporting data, it should be emphasized that the financial situation of the sector is difficult. The average capital adequacy ratio are well below the regulatory requirement. Conducted research identifies the shortage of capital since 1999.

  • Issue Year: 16/2015
  • Issue No: 8.3
  • Page Range: 91-100
  • Page Count: 10
  • Language: Polish