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

_IMF Staff Country Reports, May 23, 2017_

## Source details

**Canonical URL:** [Bulgaria: Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for Bulgaria](https://www.imf.org/en/publications/cr/issues/2017/05/24/bulgaria-financial-system-stability-assessment-press-release-staff-report-and-statement-by-44937)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/05/24/bulgaria-financial-system-stability-assessment-press-release-staff-report-and-statement-by-44937/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/05/24/bulgaria-financial-system-stability-assessment-press-release-staff-report-and-statement-by-44937/index.json)
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## Bibliographic details
- Published: May 23, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484301524.002

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### Overview and purpose
- 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.

### Key findings
- 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.

### Risks and vulnerabilities
- 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.

### Policy implications and recommendations
- 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 metadata (select highlights from the page)
- 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

*Source: Bulgaria: Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for Bulgaria (May 23, 2017).*

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17132.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17132.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2017/05/24/bulgaria-financial-system-stability-assessment-press-release-staff-report-and-statement-by-44937_