The Polish Financial Supervision Authority selected Bank Millennium SA to take over financially troubled credit and savings union SKOK Piast, Millennium BCP's Polish unit said Oct. 12.
Bank Millennium will take over the management of SKOK Piast from Oct. 17, and the official acquisition will take place Nov. 1.
Operating mainly in the Polish regions of Silesia and Lower Silesia, SKOK Piast has 41 branches and provides services to 93,000 clients.
Bank Millennium is yet another lender to take over a failing credit and savings union in 2018 after Bank BGŻ BNP Paribas SA acquired SKOK Rafineria in May.
Polish credit and savings unions have been experiencing financial problems for several years, with the problems costing Poland's Bank Guarantee Fund 4.44 billion Polish zlotys since 2014, Rzeczpospolita said Oct. 12. The fund also provided 458 million zlotys in subsidies to banks that took over some of the ailing SKOK unions in the past, the newspaper noted.
As of Oct. 12, US$1 was equivalent to 3.72 Polish zlotys.