Bulgaria : Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for Bulgaria
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
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.
Series:
Country Report No. 17/132
Subject:
Anti-money laundering Bank supervision Banking sector Bulgaria Combating the financing of terrorism Financial safety nets Financial soundness indicators Financial system stability assessment Liquidity management Loans Macroprudential Policy Nonbank financial sector Press releases Staff reports Stress testing
English
Publication Date:
May 23, 2017
ISBN/ISSN:
9781484301524/1934-7685
Stock No:
1BGREA2017001
Format:
Paper
Pages:
50
Please address any questions about this title to publications@imf.org