Bulgaria: Financial Sector Assessment Program: Technical Note-Risk Assessment and Stress Test of the Banking System
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This Technical Note discusses results of risk assessment and stress tests (ST) of the banking system in Bulgaria. ST results reveal that the Bulgarian banking system is vulnerable to the extreme realization of internal and external risks coupled with the need to clean the balance sheets from nonperforming loans (NPLs). In the baseline scenario, characterized by a modest economic growth and decline in unemployment, as well as stable and low interest rates, two banks—including a systemic one—exhibit weakness in terms of capital buffers to cope with accumulated losses in the past. These banks also experience substantial increase in their NPLs as a result of the asset quality review adjustment.
Series:
Country Report No. 2017/200
Subject:
Banking Commercial banks Financial institutions Financial regulation and supervision Financial sector policy and analysis Liquidity requirements Loans Nonperforming loans Stress testing
English
Publication Date:
July 11, 2017
ISBN/ISSN:
9781484308448/1934-7685
Stock No:
1BGREA2017003
Pages:
50
Please address any questions about this title to publications@imf.org