Marcin Mikołajczyk, Deputy Chair of the KNF, appeared at the KZBS conference: ‘Leader in the local market: the role of cooperative banks’. 

Key points of the speech:

• Cooperative banking, despite its 5% market share, has a significant potential in many areas. I am sure that it can become a leader within its market segment. The sector’s current financial situation is stable and banks have enough funds and resources to continue to grow.  The consolidation processes we are looking at right now will be moving forward, and that will allow the emergence of bigger, more complex entities, capable of providing better services to customers.
• Cooperative banks have a strong position in local communities, which manifests in the financing of local governments and local initiatives. I believe that maintaining and developing this local quality is the foundation for success.
• The sector’s financial performance is very good. The challenge, though, is to increase the lending activity which should support local communities and local businesses. We would like to see more engagement in the development of the local market, especially in the area of investment.
• One must not ignore the risks and difficult challenges. Cybersecurity, operational risk, issues related to the Green Deal (ESG) and interest rate risk management are the areas that require special attention. We expect the management boards of cooperative banks to take actions to minimise those risks, using mostly the solutions developed within associations. It is also crucial to report security incidents  in real time, in accordance with the adopted EU standard, as that will allow better protection of the entire banking sector.
• The role of cooperative banks and institutional protection schemes in the process of implementing the requirements under DORA and integrating the ESG regulations should be the key; it should comprise not only technical support and supervision over the implementation, but also a strategic coordination of activities of affiliated cooperative banks, with an emphasis on an active engagement of each cooperative bank in its own implementation processes.

Photo gallery