Bulgaria: Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for Bulgaria

May 23, 2017

Preview Citation

Format: Chicago

Bulgaria: Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for Bulgaria, (USA: International Monetary Fund, 2017) accessed November 21, 2024

Summary

This paper assesses the stability of the financial system in Bulgaria. Progress has been made in Bulgaria to strengthen supervision since the 2015 Basel Core Principles assessment, but more work and resources are needed. A more targeted strategy is needed to address high nonperforming loans (NPLs), which in Bulgaria’s banks stood at 13.7 percent of total loans as of June 2016—against the European Union–weighted average of 5.5 percent. Certain accounting, collateral valuation, and risk management practices have discouraged NPL reduction. Banks will also need to build provisions in preparation for the implementation of the forthcoming expected credit loss provisioning standards beginning in 2018.

Subject: Bank resolution, Banking, Commercial banks, Financial crises, Financial institutions, Financial Sector Assessment Program, Financial sector policy and analysis, Nonperforming loans, Stress testing

Keywords: Bank, Bank capital buffer, Bank collapse, Bank resolution, Banking system leverage ratio, Commercial banks, CR, Emergency liquidity assistance facility, Europe, Financial Sector Assessment Program, Global, Impairment practice, ISCR, Lender of last resort liquidity assistance, Liquidity, Nonperforming loans, Stress testing

Publication Details

Pages:

50
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2017/132
Stock No:

1BGREA2017001
ISBN:

9781484301524
ISSN:

1934-7685

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