{
  "title": "Bulgaria: Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for Bulgaria",
  "publication": "IMF Staff Country Reports, May 23, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2017/05/24/bulgaria-financial-system-stability-assessment-press-release-staff-report-and-statement-by-44937",
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  "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.",
  "publishDate": "2017-05-23",
  "series": "IMF Staff Country Reports",
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    {
      "heading": "Overview and purpose",
      "content": "- This paper assesses the stability of the financial system in Bulgaria.\n- Progress has been made in Bulgaria to strengthen supervision since the 2015 Basel Core Principles assessment, but more work and resources are needed."
    },
    {
      "heading": "Key findings",
      "content": "- Nonperforming loans (NPLs) in Bulgaria’s banks stood at 13.7 percent of total loans as of June 2016.\n- European Union–weighted average NPLs were 5.5 percent.\n- Certain accounting, collateral valuation, and risk management practices have discouraged NPL reduction."
    },
    {
      "heading": "Risks and vulnerabilities",
      "content": "- High stock of NPLs relative to the EU-weighted average presents a significant stability concern.\n- Weaknesses in accounting, collateral valuation, and risk management increase the difficulty of reducing NPLs and could impair banks’ balance sheets."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- A more targeted strategy is needed to address high NPLs.\n- Banks will need to build provisions in preparation for the implementation of the forthcoming expected credit loss provisioning standards beginning in 2018.\n- Continued strengthening of supervisory capacity and allocation of additional resources is required following the 2015 Basel Core Principles assessment."
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      "content": "- Publication date on landing page: May 23, 2017\n- Pages: 50\n- Series: Country Report No. 2017/132\n- Issue: 132\n- DOI: https://doi.org/10.5089/9781484301524.002\n- ISBN: 9781484301524\n- ISSN: 1934-7685\n\nSource: Bulgaria: Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for Bulgaria (May 23, 2017).\n\n---\n\n Content in this bundle\n\n- Country Report\n  - Country Report (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Country Report (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/cr/issues/2017/05/24/bulgaria-financial-system-stability-assessment-press-release-staff-report-and-statement-by-44937"
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    "Published: May 23, 2017",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781484301524.002",
    "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.",
    "Nonperforming loans (NPLs) in Bulgaria’s banks stood at 13.7 percent of total loans as of June 2016.",
    "European Union–weighted average NPLs were 5.5 percent.",
    "Certain accounting, collateral valuation, and risk management practices have discouraged NPL reduction.",
    "High stock of NPLs relative to the EU-weighted average presents a significant stability concern.",
    "Weaknesses in accounting, collateral valuation, and risk management increase the difficulty of reducing NPLs and could impair banks’ balance sheets.",
    "A more targeted strategy is needed to address high NPLs.",
    "Banks will need to build provisions in preparation for the implementation of the forthcoming expected credit loss provisioning standards beginning in 2018.",
    "Continued strengthening of supervisory capacity and allocation of additional resources is required following the 2015 Basel Core Principles assessment.",
    "Publication date on landing page: May 23, 2017",
    "Pages: 50",
    "Series: Country Report No. 2017/132",
    "Issue: 132",
    "DOI: https://doi.org/10.5089/9781484301524.002",
    "ISBN: 9781484301524",
    "ISSN: 1934-7685",
    "**Country Report**"
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