The Riigikogu reviewed the new law regarding credit unions. According to the new law, credit unions must become banks or cooperative banks. This means they will fall under the supervision of the Financial Supervision Authority.
Raigo Sõlg said that currently, credit unions are under the supervision of the Financial Supervision Authority. He noted that the elimination of the credit union form is a major problem.
In the future, credit unions will have to apply for an operating license from the Financial Supervision Authority. They must be prepared to repay deposits within 60 days.
Sõlg believes that if they can resolve their issues, they can move forward. However, continuing as a cooperative bank is not easy.
The capital of a cooperative bank constantly changes. If new members join, the capital increases. If members leave, the capital decreases. The capital is continuously fluctuating.
In the case of a joint-stock company, the capital is fixed. If someone wants to leave, they must sell their shares. For a cooperative bank, this is more complicated because the capital is constantly changing.