Deprecated: Optional parameter $output declared before required parameter $atts is implicitly treated as a required parameter in /www/webvol27/ld/wtvuwnos19qprj8/eraz-conference.com/public_html/wp-content/plugins/unitegallery/inc_php/framework/provider/provider_main_file.php on line 39
Banking Sector - COVID-19 Challenge - Sustainability - Regulations

The COVID-19 Challenge and the Sustainability of the Bulgarian Banking Sector

 

Svilen Kolev – Association of Banks in Bulgaria, 97 Knyaz Boris I str., Sofia 1000, Bulgaria, University of National and World Economy, Sofia, Bulgaria

 

7th International Scientific ERAZ Conference – ERAZ 2021 – Conference Proceedings: KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT,  Online/virtual, May 27, 2021

ERAZ Conference Proceedings are published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ERAZ conference partners: Faculty of Economics and Business, Mediterranean University, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; AMBIS University, Prague – Czech Republic; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia

ERAZ Conference 2021 Conference Proceedings: ISBN 978-86-80194-46-2, ISSN 2683-5568, DOI: https://doi.org/10.31410/ERAZ.2021

Keywords:
Bank management;
Banking system;
Regulations

DOI: https://doi.org/10.31410/ERAZ.2021.43

Abstract: The paper examines the effects and the challenges posed by the COVID-19 pandemic on the banking sector in Bulgaria. The research describes the response from the global and European regulatory author­ities. An emphasis is placed on the national regulatory measures and the condition of the banking system in Bulgaria. Financial soundness and sus­tainability indicators about the banks operating in Bulgaria on aggregate basis are analyzed. The recent developments regarding the position of the banking sector and lending dynamics are also viewed. Conclusions and a brief discussion about possible future challenges and prospects are made, in terms of a potential subsiding of COVID-19.

ERAZ Conference

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

ERAZ Conference Open Access

References

Association of Banks in Bulgaria (2020). The economy and the banking sector in Bulgaria, third quarter of 2020, available at: <https://abanksb.bg/downloads/quarterly-informa­tion/2020-Q3-Review-EN.pdf>

Bank for International Settlements (2010). Basel III: A global regulatory framework for more resilient banks and banking systems, Basel Committee on Banking Supervision, Decem­ber 2010, available at:

<https://www.bis.org/publ/bcbs189_dec2010.htm#:~:text=The%20Committee%20today%20re­leased%20the,proposals%20published%20in%20December%202009>

Bank for International Settlements (2017). Basel III: Finalising post-crisis reforms, Basel Com­mittee on Banking Supervision, December 2017, available at: <https://www.bis.org/bcbs/ publ/d424.htm>

Bulgarian National Bank (2020). Press release, March 19, 2020, available at: <https://www.bnb. bg/PressOffice/POPressReleases/POPRDate/PR_20200319_EN>

Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/ EC and 2006/49/EC, available at: <https://eur-lex.europa.eu/legal-content/EN/TXT/PD­F/?uri=CELEX:32013L0036&from=EN>

European Banking Authority (2020a). EBA publishes Guidelines on treatment of public and private moratoria in light of COVID-19 measures, 2 April 2020, available at: <https:// www.eba.europa.eu/eba-publishes-guidelines-treatment-public-and-private-morato­ria-light-covid-19-measures>

European Banking Authority (2020b). Banks report a significant use of COVID-19 morato­ria and public guarantee, 20 November 2020, available at: <https://www.eba.europa.eu/ banks-report-significant-use-covid-19-moratoria-and-public-guarantees>

European Banking Federation (2020). Facts and Figures: Banking in Europe 2020 – COVID-19 chapter, December 2020, available at: <https://www.ebf.eu/facts-and-figures/covid-19/>

European Commission (2020). Recovery plan for Europe, available at: <https://ec.europa.eu/ info/strategy/recovery-plan-europe_en>

European Central Bank (2020a). Monetary policy decisions, 12 March 2020, available at: <https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.mp200312~8d3aec3ff2.en.html>

European Central Bank (2020b). ECB Banking Supervision provides temporary capital and op­erational relief in reaction to coronavirus, 12 March 2020, available at: <https://www.bank­ingsupervision.europa.eu/press/pr/date/2020/html/ssm.pr200312~43351ac3ac.en.html>

European Central Bank (2020c). Monetary policy decisions, 4 June 2020, available at: <https:// www.ecb.europa.eu/press/pr/date/2020/html/ecb.mp200604~a307d3429c.en.html>

European Central Bank (2020d). Monetary developments in the euro area: December 2020, Press release, 29 January 2021, available at: <https://www.ecb.europa.eu/press/pr/stats/ md/html/ecb.md2012~cbd6f9f354.en.html>

Hristov, K. (2020). Interview of Mr. Kalin Hristov, Deputy Governor of the BNB, Head of the Issue Department, for the “BGlobal” magazine, issue 4, 2020, available at: <https://www. bnb.bg/PressOffice/POStatements/POADate/03_HRISTOV_20201214_BG>

Radev, D. (2020). The banking sector in 2020 – how we coped and what lies ahead, Publica­tion of Mr. Dimitar Radev, Governor of the BNB, in the bulletin of the Association of Banks in Bulgaria, issue 64, December 2020, pp. 3-6, available at: https://abanksb.bg/ bulletin/64-bg.pdf

Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Reg­ulation (EU) No 648/2012, available at: <https://eur-lex.europa.eu/legal-content/EN/TXT/ PDF/?uri=CELEX:32013R0575&from=EN>

Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020 amending Regulations (EU) No 575/2013 and (EU) 2019/876 as regards certain adjust­ments in response to the COVID-19 pandemic, available at: <https://eur-lex.europa.eu/ legal-content/EN/TXT/PDF/?uri=CELEX:32020R0873&from=EN>

ADDITIONAL READING

Kazandzhieva, I. (2019). Profitability and Efficiency of the Bulgarian Banks – Large, Medi­um-Sized and Small Banks, proceedings from 7th UBT International Conference on Man­agement, Business and Economics, pp.153-158, publisher UBT

Trifonova, S., Atanasov, A., and Kolev, Sv. (2017). The Unconventional Monetary Policy of the World’s Leading Central Banks and its Effects on Developed and Developing Countries, including Bulgaria, Collective Monograph, Eudaimonia Production, Sofia (in Bulgarian)