The significance of equity capital for proper cooperative bank’s functioning

Antoni Magdoń

The John Paul II Catholic University of Lublin , Poland
https://orcid.org/0000-0002-2113-4628



Abstract

An equity capital has a special place in cooperative banks. Their scope of functions and also sphere of activity depends on having the equity capital. The equity capital has to be stable and cannot be subject to limitation and it also is the basis to establish economic rates and safety standards in bank’s activity at the same time. The banks’ equity capital includes the following items:
basic capital,
reserve capital,
equity capital reducing items.
The legislator provided for so-called „procedurę of access” to achieving statutory requ ired amount of equity capital at the equivalent of 1 000 000 euro in PLN. By the right of the article 172, paragraph 3 Banking Law Act – every cooperate bank which united with uniting bank was required to increase the equity capital to the amount not less than:
the equivalent of 300,000 euro – until the 31st Dec 2001.
the equivalent of 500,000 euro – until the 31st Dec 2005.
the equivalent of 1,000,000 euro – until the 31st Dec 2010.

Keywords:

Bank spółdzielczy, fundusze własne, próg kapitałowy, Komisja Nadzoru Bankowego



Ustawa z dnia 29 sierpnia 1997 r., Prawo bankowe

Ustawa z dnia 7 grudnia 2000 r. o funkcjonowaniu banków spółdzielczych, ich zrzeszaniu się i bankach zrzeszających.

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Published
2008-12-31


Magdoń, A. (2008). Znaczenie funduszy własnych dla prawidłowego funkcjonowania banku spółdzielczego. Przegląd Prawno-Ekonomiczny, (5 (4), 103–109. Retrieved from https://czasopisma.kul.pl/index.php/ppe/article/view/15226

Antoni Magdoń 
The John Paul II Catholic University of Lublin https://orcid.org/0000-0002-2113-4628



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Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.