Bulgaria Policy Note : Financial Sector
This report describes developments in the banking sector. The banking sector has remained stable throughout the ongoing financial crisis, although profitability is declining. Indicators suggest that banks are generally sound. It next describes the...
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| Format: | Policy Note |
| Language: | English en_US |
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Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2009/07/16797519/bulgaria-policy-note-financial-sector http://hdl.handle.net/10986/18894 |
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okr-10986-18894 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING BALANCE SHEET BANK CREDIT BANK DEPOSITS BANK OPERATIONS BANKING SECTOR BANKING SYSTEM BANKRUPTCIES BANKRUPTCY BANKRUPTCY PROCEDURES BANKRUPTCY RESOLUTION BENEFICIARIES BOND BOND MARKET BUSINESS INVESTMENT CAPITAL MARKETS CAPITAL NEEDS CAPITAL RATIO CAPITAL REQUIREMENT CDS CENTRAL BANK CONSUMER LOANS CONTAGION CONTINGENCY PLANS CORPORATE BORROWING CORPORATE LAW CORPORATE RESTRUCTURING CORPORATE SUSTAINABILITY COURT SYSTEM CREDIT AVAILABILITY CREDIT DEFAULT CREDIT DEFAULT SWAPS CREDIT GROWTH CREDIT LINES CREDIT QUALITY CREDIT RISK CREDIT RISKS CREDIT SOURCE CREDITOR CREDITOR RIGHTS CREDITORS CURRENCY BOARD CURRENCY BOARD ARRANGEMENT CURRENCY MISMATCHES CURRENCY RISKS CURRENT ACCOUNT DEFICIT DEBT LEVEL DEBTS DEMAND FOR CREDIT DEPOSIT DEPOSIT INSURANCE DEPOSITOR DEPOSITORS DEVELOPMENT BANK DOMESTIC BANKING DOMESTIC INVESTORS ECONOMIC DOWNTURN EMPLOYMENT ENTERPRISE CREDIT EQUITY INVESTMENTS EQUITY MARKET EQUITY MARKET DEVELOPMENTS EXISTING DEBTS EXPOSURES EXTERNAL DEBT EXTERNAL FUNDING FINANCIAL AUTHORITIES FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL STRESSES FINANCIAL SYSTEM FISCAL POLICIES FIXED INVESTMENT FLOW OF CREDIT FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURE FOREIGN INSTITUTIONAL INVESTORS FOREIGN INVESTORS FORMAL BANKRUPTCY FORMAL BANKRUPTCY PROCEDURES GOVERNMENT BUDGETS GOVERNMENT POLICIES HOLDINGS HOME COUNTRY INSOLVENCY INSTITUTIONAL INVESTORS INSURANCE INDUSTRIES INTEREST RATES INVESTMENT FINANCE INVESTMENT OPPORTUNITIES INVESTMENT REGULATIONS INVESTMENTS IN EQUITY JUDICIARY JUDICIARY SYSTEM LIQUIDITY LIQUIDITY RISK LOAN LOAN ORIGINATIONS LOCAL CURRENCY LOCAL GOVERNMENT MANUFACTURING INDUSTRIES MARKET BORROWING MARKET RISK MARKET RISKS MATURITIES MATURITY MORTGAGES NATIONAL BANK NET ASSETS NON-PERFORMING LOANS OUTPUT PENSION PENSION FUND PENSION FUNDS PENSIONS PORTFOLIO PORTFOLIO QUALITY PRIVATE PENSION PRIVATE SECTOR CREDIT PROFITABILITY RAPID GROWTH RATE OF RETURN REAL ESTATE REALLOCATION OF RESOURCES REGULATORY AUTHORITIES REGULATORY FRAMEWORK RESERVE RESERVE REQUIREMENTS RESERVES RETIREMENT RETURN ON ASSETS RETURNS RISK MANAGEMENT SECURITIES SECURITIES MARKETS SHAREHOLDERS SHORT-TERM DEBT SHORT-TERM EXTERNAL DEBT SOLVENCY STOCK EXCHANGE STOCK MARKET STOCK MARKET PRICES STOCKS SUBSIDIARIES TOTAL DEBT TRANSPARENCY WHOLESALE BANK WITHDRAWAL WORKING CAPITAL WORKOUTS |
| spellingShingle |
ACCOUNTING BALANCE SHEET BANK CREDIT BANK DEPOSITS BANK OPERATIONS BANKING SECTOR BANKING SYSTEM BANKRUPTCIES BANKRUPTCY BANKRUPTCY PROCEDURES BANKRUPTCY RESOLUTION BENEFICIARIES BOND BOND MARKET BUSINESS INVESTMENT CAPITAL MARKETS CAPITAL NEEDS CAPITAL RATIO CAPITAL REQUIREMENT CDS CENTRAL BANK CONSUMER LOANS CONTAGION CONTINGENCY PLANS CORPORATE BORROWING CORPORATE LAW CORPORATE RESTRUCTURING CORPORATE SUSTAINABILITY COURT SYSTEM CREDIT AVAILABILITY CREDIT DEFAULT CREDIT DEFAULT SWAPS CREDIT GROWTH CREDIT LINES CREDIT QUALITY CREDIT RISK CREDIT RISKS CREDIT SOURCE CREDITOR CREDITOR RIGHTS CREDITORS CURRENCY BOARD CURRENCY BOARD ARRANGEMENT CURRENCY MISMATCHES CURRENCY RISKS CURRENT ACCOUNT DEFICIT DEBT LEVEL DEBTS DEMAND FOR CREDIT DEPOSIT DEPOSIT INSURANCE DEPOSITOR DEPOSITORS DEVELOPMENT BANK DOMESTIC BANKING DOMESTIC INVESTORS ECONOMIC DOWNTURN EMPLOYMENT ENTERPRISE CREDIT EQUITY INVESTMENTS EQUITY MARKET EQUITY MARKET DEVELOPMENTS EXISTING DEBTS EXPOSURES EXTERNAL DEBT EXTERNAL FUNDING FINANCIAL AUTHORITIES FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL STRESSES FINANCIAL SYSTEM FISCAL POLICIES FIXED INVESTMENT FLOW OF CREDIT FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURE FOREIGN INSTITUTIONAL INVESTORS FOREIGN INVESTORS FORMAL BANKRUPTCY FORMAL BANKRUPTCY PROCEDURES GOVERNMENT BUDGETS GOVERNMENT POLICIES HOLDINGS HOME COUNTRY INSOLVENCY INSTITUTIONAL INVESTORS INSURANCE INDUSTRIES INTEREST RATES INVESTMENT FINANCE INVESTMENT OPPORTUNITIES INVESTMENT REGULATIONS INVESTMENTS IN EQUITY JUDICIARY JUDICIARY SYSTEM LIQUIDITY LIQUIDITY RISK LOAN LOAN ORIGINATIONS LOCAL CURRENCY LOCAL GOVERNMENT MANUFACTURING INDUSTRIES MARKET BORROWING MARKET RISK MARKET RISKS MATURITIES MATURITY MORTGAGES NATIONAL BANK NET ASSETS NON-PERFORMING LOANS OUTPUT PENSION PENSION FUND PENSION FUNDS PENSIONS PORTFOLIO PORTFOLIO QUALITY PRIVATE PENSION PRIVATE SECTOR CREDIT PROFITABILITY RAPID GROWTH RATE OF RETURN REAL ESTATE REALLOCATION OF RESOURCES REGULATORY AUTHORITIES REGULATORY FRAMEWORK RESERVE RESERVE REQUIREMENTS RESERVES RETIREMENT RETURN ON ASSETS RETURNS RISK MANAGEMENT SECURITIES SECURITIES MARKETS SHAREHOLDERS SHORT-TERM DEBT SHORT-TERM EXTERNAL DEBT SOLVENCY STOCK EXCHANGE STOCK MARKET STOCK MARKET PRICES STOCKS SUBSIDIARIES TOTAL DEBT TRANSPARENCY WHOLESALE BANK WITHDRAWAL WORKING CAPITAL WORKOUTS World Bank Bulgaria Policy Note : Financial Sector |
| geographic_facet |
Europe and Central Asia Bulgaria |
| description |
This report describes developments in
the banking sector. The banking sector has remained stable
throughout the ongoing financial crisis, although
profitability is declining. Indicators suggest that banks
are generally sound. It next describes the state of funding
of bank operations, including wholesale bank funding. In
response to financial stress, The Bulgarian National
Bank's (BNB) actions have helped to ensure financial
stability in the banking sector. In order to boost
confidence, deposit insurance has increased. External
funding dynamics are generally good. Foreign currency
mismatches are substantial, and the corporate sector has
high direct foreign currency exposure, mostly in euros.
Short-term external debt (deposits and borrowings) of banks
almost doubled within a year in 2008, and account for close
to 80 percent of banks' external debt. Regarding recent
trends in credit to the enterprise sector, going forward,
demand for banking credit, and especially investment
finance, will fall, in line with the economic downturn. In
equity market developments, Bulgaria's stock market
plunged, with adverse consequences for pension funds. Global
deleveraging by foreign institutional investors led to a
withdrawal of their holdings from the Sofia stock exchange,
leading to a collapse of stock market prices. The report
concludes with several policy recommendations. |
| format |
Economic & Sector Work :: Policy Note |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Bulgaria Policy Note : Financial Sector |
| title_short |
Bulgaria Policy Note : Financial Sector |
| title_full |
Bulgaria Policy Note : Financial Sector |
| title_fullStr |
Bulgaria Policy Note : Financial Sector |
| title_full_unstemmed |
Bulgaria Policy Note : Financial Sector |
| title_sort |
bulgaria policy note : financial sector |
| publisher |
Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2009/07/16797519/bulgaria-policy-note-financial-sector http://hdl.handle.net/10986/18894 |
| _version_ |
1764441013319892992 |
| spelling |
okr-10986-188942021-04-23T14:03:45Z Bulgaria Policy Note : Financial Sector World Bank ACCOUNTING BALANCE SHEET BANK CREDIT BANK DEPOSITS BANK OPERATIONS BANKING SECTOR BANKING SYSTEM BANKRUPTCIES BANKRUPTCY BANKRUPTCY PROCEDURES BANKRUPTCY RESOLUTION BENEFICIARIES BOND BOND MARKET BUSINESS INVESTMENT CAPITAL MARKETS CAPITAL NEEDS CAPITAL RATIO CAPITAL REQUIREMENT CDS CENTRAL BANK CONSUMER LOANS CONTAGION CONTINGENCY PLANS CORPORATE BORROWING CORPORATE LAW CORPORATE RESTRUCTURING CORPORATE SUSTAINABILITY COURT SYSTEM CREDIT AVAILABILITY CREDIT DEFAULT CREDIT DEFAULT SWAPS CREDIT GROWTH CREDIT LINES CREDIT QUALITY CREDIT RISK CREDIT RISKS CREDIT SOURCE CREDITOR CREDITOR RIGHTS CREDITORS CURRENCY BOARD CURRENCY BOARD ARRANGEMENT CURRENCY MISMATCHES CURRENCY RISKS CURRENT ACCOUNT DEFICIT DEBT LEVEL DEBTS DEMAND FOR CREDIT DEPOSIT DEPOSIT INSURANCE DEPOSITOR DEPOSITORS DEVELOPMENT BANK DOMESTIC BANKING DOMESTIC INVESTORS ECONOMIC DOWNTURN EMPLOYMENT ENTERPRISE CREDIT EQUITY INVESTMENTS EQUITY MARKET EQUITY MARKET DEVELOPMENTS EXISTING DEBTS EXPOSURES EXTERNAL DEBT EXTERNAL FUNDING FINANCIAL AUTHORITIES FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL STRESSES FINANCIAL SYSTEM FISCAL POLICIES FIXED INVESTMENT FLOW OF CREDIT FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURE FOREIGN INSTITUTIONAL INVESTORS FOREIGN INVESTORS FORMAL BANKRUPTCY FORMAL BANKRUPTCY PROCEDURES GOVERNMENT BUDGETS GOVERNMENT POLICIES HOLDINGS HOME COUNTRY INSOLVENCY INSTITUTIONAL INVESTORS INSURANCE INDUSTRIES INTEREST RATES INVESTMENT FINANCE INVESTMENT OPPORTUNITIES INVESTMENT REGULATIONS INVESTMENTS IN EQUITY JUDICIARY JUDICIARY SYSTEM LIQUIDITY LIQUIDITY RISK LOAN LOAN ORIGINATIONS LOCAL CURRENCY LOCAL GOVERNMENT MANUFACTURING INDUSTRIES MARKET BORROWING MARKET RISK MARKET RISKS MATURITIES MATURITY MORTGAGES NATIONAL BANK NET ASSETS NON-PERFORMING LOANS OUTPUT PENSION PENSION FUND PENSION FUNDS PENSIONS PORTFOLIO PORTFOLIO QUALITY PRIVATE PENSION PRIVATE SECTOR CREDIT PROFITABILITY RAPID GROWTH RATE OF RETURN REAL ESTATE REALLOCATION OF RESOURCES REGULATORY AUTHORITIES REGULATORY FRAMEWORK RESERVE RESERVE REQUIREMENTS RESERVES RETIREMENT RETURN ON ASSETS RETURNS RISK MANAGEMENT SECURITIES SECURITIES MARKETS SHAREHOLDERS SHORT-TERM DEBT SHORT-TERM EXTERNAL DEBT SOLVENCY STOCK EXCHANGE STOCK MARKET STOCK MARKET PRICES STOCKS SUBSIDIARIES TOTAL DEBT TRANSPARENCY WHOLESALE BANK WITHDRAWAL WORKING CAPITAL WORKOUTS This report describes developments in the banking sector. The banking sector has remained stable throughout the ongoing financial crisis, although profitability is declining. Indicators suggest that banks are generally sound. It next describes the state of funding of bank operations, including wholesale bank funding. In response to financial stress, The Bulgarian National Bank's (BNB) actions have helped to ensure financial stability in the banking sector. In order to boost confidence, deposit insurance has increased. External funding dynamics are generally good. Foreign currency mismatches are substantial, and the corporate sector has high direct foreign currency exposure, mostly in euros. Short-term external debt (deposits and borrowings) of banks almost doubled within a year in 2008, and account for close to 80 percent of banks' external debt. Regarding recent trends in credit to the enterprise sector, going forward, demand for banking credit, and especially investment finance, will fall, in line with the economic downturn. In equity market developments, Bulgaria's stock market plunged, with adverse consequences for pension funds. Global deleveraging by foreign institutional investors led to a withdrawal of their holdings from the Sofia stock exchange, leading to a collapse of stock market prices. The report concludes with several policy recommendations. 2014-07-17T22:22:08Z 2014-07-17T22:22:08Z 2009-07 http://documents.worldbank.org/curated/en/2009/07/16797519/bulgaria-policy-note-financial-sector http://hdl.handle.net/10986/18894 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work Europe and Central Asia Bulgaria |