Recommendation A-SKOK on Good Practices for Managing Credit Exposure Risk in Cooperative Savings and Loan Associations

The Financial Supervision Commission issued Recommendation A-SKOK to establish good practices for managing credit exposure risk in Polish cooperative savings and loan associations (SKOKs), aligning their standards with those of the banking sector. The document mandates strict governance structures, requiring boards to define and monitor key risk parameters such as Loan-to-Value (LTV) and Debt-to-Income (DtI) ratios, while enforcing rigorous creditworthiness assessments and collateral requirements. Implementation is phased based on institution size, with full compliance required for larger entities by March 2016 and specific extensions for smaller groups, supported by the National Cooperative Savings and Loan Association.

Poland

Polish Financial Supervision Authority