Activity of cooperative banks: Research on structural changes and factors related to their number in the Polish voivodeships

Abstract

The article pertains to the topic of cooperative banking in Poland that has been significantly connected with development of the local communities since the nineteenth century. The objective of the article is a structural analysis and an examination of the relations between the number of banks in the Polish voivodeships and selected economic indicators. The analysis of cooperative banking in Poland, including the historical factors, structural changes, financial situation against the background of the banking sector and legal conditions of functioning has been conducted. On the basis of the conducted research it has been stated that a number of cooperative banks is related to the population and the number of districts in the voivodeships. The local character of these banks confirms their connection with the service of agriculture. Correlation with the number of agricultural holdings, agricultural land area or global commodity production in the voivodeships has been presented. Cooperative banks in Poland are mostly characterized by the level of equity capital which allows them to operate within the territory not exceeding the district confirming the fragmented character of this sector. The capital held by the bank and the address of its seat, resulting from normative acts regarding the activity of these banks and their financial condition, have an influence on the area of activity.