## Bulgaria: Financial Sector Assessment Program: Technical Note - Financial Safety Net and Crisis Management

_IMF Staff Country Reports, July 11, 2017_

## Source details

**Canonical URL:** [Bulgaria: Financial Sector Assessment Program: Technical Note - Financial Safety Net and Crisis Management](https://www.imf.org/en/publications/cr/issues/2017/07/11/bulgaria-financial-sector-assessment-program-technical-note-financial-safety-net-and-crisis-45060)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/07/11/bulgaria-financial-sector-assessment-program-technical-note-financial-safety-net-and-crisis-45060/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/07/11/bulgaria-financial-sector-assessment-program-technical-note-financial-safety-net-and-crisis-45060/index.json)
- [Bundle manifest](/en/publications/cr/issues/2017/07/11/bulgaria-financial-sector-assessment-program-technical-note-financial-safety-net-and-crisis-45060/bundle-manifest.json)

## Bibliographic details
- Published: July 11, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484308493.002

---

### Overview
- This Technical Note evaluates the financial safety net and crisis management for Bulgaria.
- Since the 2008 IMF Financial Sector Assessment Program Update, Bulgaria’s financial safety net and crisis management arrangements, including bank resolution and contingency planning, have improved.
- In 2015, to implement pertinent European Union rules, Bulgaria:
  - introduced a resolution regime for banks and investment firms;
  - designated resolution authorities for said financial institutions; and
  - established mechanisms to fund resolution measures.
- Despite the improvements, the financial safety net and crisis management arrangements face crucial challenges because none of their components is fully developed.
- To ensure operational capacity to rapidly deploy recovery and resolution tools, further actions are needed to strengthen the safety net and crisis management arrangements.

### Key findings
- Improvement since 2008 in financial safety net and crisis management arrangements, notably in bank resolution and contingency planning.
- Legal and institutional changes in 2015 implemented EU rules by creating a resolution regime for banks and investment firms and designating resolution authorities.
- Funding mechanisms for resolution measures have been established.
- Critical gaps remain: none of the components of the safety net and crisis management framework is fully developed, limiting operational readiness to deploy recovery and resolution tools rapidly.

### Policy implications and recommended actions
- Strengthen operational capacity to ensure rapid deployment of recovery and resolution tools.
- Further develop each component of the financial safety net and crisis management arrangements to address the current crucial challenges and gaps.
- Continue aligning national frameworks with pertinent European Union rules and ensure designated authorities and funding mechanisms are fully operational.

### Scope, subjects, and keywords
- Subject: Bank resolution, Bank resolution framework, Banking, Bridge bank, Contingency planning, Crisis management framework, Financial crises
- Keywords: bank bankruptcy regime, Bank resolution, Bank resolution framework, bank resolution regime, Bridge bank, bridge bank tool, Contingency planning, CR, Crisis management framework, financial support, Global, ISCR, last-resort government stabilization tool, liquidity support, resolution authorities, resolution authority, resolution tool, uniform bank resolution regime

*International Monetary Fund. "Bulgaria: Financial Sector Assessment Program: Technical Note - Financial Safety Net and Crisis Management", July 11, 2017.*

---

## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17202.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17202.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2017/07/11/bulgaria-financial-sector-assessment-program-technical-note-financial-safety-net-and-crisis-45060_