engleski

Transformation of Savings and Credit Cooperatives in Other Organizational Forms

Harmonization with EU legislation has brought changes in Croatian financial system regulation. Among other, Credit Unions Law was enacted, as well as Act on Amendments to the Banking Law. These laws inaugurate new types of financial institutions in Croatian financial system: savings banks and credit unions. Consequently, by inaugurating these institutions into financial system savings and credit cooperatives became history. Based on the empirical analysis regarding business activities of savings and credit cooperatives in the Republic of Croatia at the end of year 2006., and also comparative analysis regarding legislative framework that regulates activities of savings and credit cooperatives, credit unions and savings banks, this paper shows basic characteristics of the transformation of savings and credit cooperatives in other types of financial institutions, i.e. in savings banks or credit unions. The ultimate goal of this paper is to identify basic characteristics of transformation process and to identify which financial variables are relevant within the meaning of differentiation between savings and credit cooperatives that terminated their business activities and those that managed to transform in other organizational forms. The results of conducted research show that following information were relevant during the transformation process of savings and credit cooperatives: capital and reserves, total assets and free cash flow. Based on the previously mentioned information, it is possible to distinguishing savings and credit cooperatives that were transformed into savings banks or credit unions and those that terminated their business activities i.e. that were put into liquidation.

Savings and credit cooperatives; transformation; organizational forms; savings banks; credit unions

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