Bulgaria: Financial Sector Assessment Program - Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision
IMF Staff Country Reports, October 29, 2015
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- Bulgaria: Financial Sector Assessment Program - Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision
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Bibliographic details
- Published: October 29, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513506708.002
Summary and Key Findings
- The paper discusses key findings and recommendations of the Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision on Bulgaria.
- Within the Banking Supervision Department, the Special Supervision Directorate (SSD) has been assigned multiple activities that go beyond its primary objective of ensuring integrity in the banking sector.
- The Bulgarian National Bank is not empowered to require a bank to change its internal organization or structure.
- It is recommended to refocus the activity of the SSD on its core mandate of financial integrity.
Policy Recommendations and Organizational Measures
- Refocus the SSD on its core mandate of financial integrity.
- Achieve this refocus by assigning nonsupervisory activities to other Directorates, preferably outside the Banking Supervision Department.
Institutional and Supervisory Issues
- SSD responsibilities currently include multiple activities beyond ensuring integrity in the banking sector.
- Legal limitation: Bulgarian National Bank lacks empowerment to require a bank to change its internal organization or structure.
Subjects and Keywords
- Subject: Bank supervision, Banking, Credit, Credit risk, Financial regulation and supervision, Internal controls, Market risk, Money, Revenue administration
- Keywords: Bank supervision, board of directors, business strategy, central bank, CR, Credit, Credit risk, Eastern Europe, Global, interest rate, Internal controls, ISCR, Market risk, parent company, risk management, risk profile, senior management, Southern Europe