Bulgaria Detailed Assessment of Observance

This assessment of the current state of the implementation of the Basel core principles (BCP) for effective banking supervision in Bulgaria has been completed as a stand-alone report on the observance of standards and codes undertaken by the international monetary fund (IMF) and the World Bank during March of 2015 at the request of the Bulgarian authorities. It reflects the regulatory and supervisory framework in place as of the date of the completion of the assessment. The Bulgarian National Bank (BNB) has an internal governance structure which, by vesting the majority of the powers of supervision in the Deputy Governor for banking supervision, exposes the supervisory function to risks. Under the BNB’s legal structure, supervision and enforcement is dissociated from the Governing Council, and the Governing Council has no right to compel transparency of decision making or to impose a framework to ensure consistency in the use of the enforcement regime. There are material concerns that the BNB is too resource constrained to deliver effective minimum levels of supervision. Despite a broad range of supervisory powers, there are some gaps in the legal framework that unduly restrict the BNB’s locus. The BNB has a good understanding of risk and many strong practices, and also making good use of international standards and guidelines, but there are some important system wide vulnerabilities. The assessment team reviewed the framework of laws, rules, and guidance and held extensive meetings with officials of the BNB, and additional meetings with the Finance Ministry, auditing firms, professional bodies, and banking sector participants. The authorities provided a comprehensive self-assessment of the CPs, as well as detailed responses to additional questionnaires, and facilitated access to supervisory documents and files on a confidential basis as well as staff and systems.

Bibliographic Details

Main Authors:	International Monetary Fund, World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2015-09
Subjects:	INTERNATIONAL ACCOUNTING STANDARDS, ACCOUNTING PRINCIPLES, FINANCIAL SERVICES, OPERATIONAL RISK, LEGAL PROVISION, INTEREST INCOME, FINANCE MINISTRIES, CLASSIFIED LOANS, ACCOUNTING, DEPOSITS, PRINCIPAL, AUTONOMY, BANKING INDUSTRY, INTEREST, BANK OFFICERS, FACTORING, LAWS, SUPERVISORY REGIMES, INTERNAL MANAGEMENT INFORMATION, NET REALIZABLE VALUE, INTERNAL AUDITS, BANKING SERVICES, BANKING SYSTEMS, BOARDS OF DIRECTORS, CAPITAL ADEQUACY, REORGANIZATION, CONNECTED LENDING, PRICING, PROBABILITY OF DEFAULT, PROJECTS, INTEREST MARGIN, BANKRUPTCY, PROBLEM LOANS, DIVIDEND POLICY, AUDITS, BUDGETARY PROCESSES, PRESENT VALUE, NET PROFIT, PUBLIC POLICY, TECHNICAL ASSISTANCE, PENALTIES, LEGAL PROVISIONS, SETTLEMENT SYSTEMS, OFFSITE SUPERVISION, COOPERATIVE BANKS, ACCOUNTING POLICIES, CHECKING, TRANSFERS, FINANCIAL INSTITUTIONS, DEBT, MARKETS, FINANCIAL CRISES, DEPOSIT INSURANCE, BANK LIQUIDITY, ENTERPRISES, ENFORCEMENT POWERS, LEGAL FRAMEWORK, SUBSIDIES, ASSET CLASSIFICATION, GRANTS, CREDIT ORIGINATION, INFRASTRUCTURE, BANKING SECTOR, BANKS, BANKING RISKS, SUPERVISORY AUTHORITIES, OPERATIONAL RISKS, CAPITAL, FINANCIAL TRANSACTIONS, AUDITORS, FINANCIAL POLICIES, SOVEREIGN RISK, BANK FAILURES, LOAN LOSS PROVISIONS, OFF BALANCE SHEET, BANK, LENDER OF LAST RESORT, MANAGEMENT INFORMATION SYSTEMS, PRUDENTIAL REGULATIONS, BANKING LAWS, CAPITALIZATION, REGULATORY REPORTS, FINANCIAL PERFORMANCE, MARKET DISCIPLINE, SUBORDINATED DEBT, RATING SYSTEMS, ASSET MANAGEMENT COMPANIES, MARKET RISK, TIER 1 CAPITAL, SUBSIDIARY, CREDIT RISK, GOVERNANCE, PROFITABILITY, INSURANCE, TAXATION, ACCOUNTING STANDARDS, COMMERCIAL BANKS, MORTGAGE LOANS, TIER 2 CAPITAL, CAPITAL REQUIREMENT, ACCOUNTING PROCEDURES, RISK TAKING, PRICING MODELS, ON SITE EXAMINATION, LENDING, LIQUIDITY RATIO, BANKING SUPERVISION, PROBLEM BANKS, BANKING LAW, PAYMENT SYSTEMS, LIQUID ASSETS, INTERNATIONAL BANKS, CONSOLIDATION, CONSOLIDATED SUPERVISION, EXTERNAL AUDITORS, ASSET TRANSFERS, CAPITAL MARKETS, HOLDING COMPANIES, REGULATORY FRAMEWORK, ONSITE EXAMINATION, SMALL BANKS, LIQUIDATION, GUARANTEES, AFFILIATED COMPANIES, INDUSTRY, BANKING SYSTEM, CAPITAL BASE, STRATEGIES, RESOURCE ALLOCATION, ACCOUNTING FRAMEWORK, SERVICES, LOAN COMMITMENTS, HOUSING, CREDIT RISK MANAGEMENT, HUMAN RESOURCE MANAGEMENT, MACROECONOMIC CONDITIONS, ASSET MANAGEMENT, CENTRAL BANKS, SAVING, ADEQUATE DISCLOSURE, CAPITAL PLANNING, ELECTRONIC BANKING, BUDGET, FINANCIAL STRENGTH, INTEREST RATES, MIGRATION, CRITERIA, CAPITAL REQUIREMENTS, LEGISLATION, LOANS, FINANCIAL REPORTING PERIOD, FINANCE, RETURN ON ASSETS, EQUITY, BANK SECURITY, INSURED DEPOSITS, NET INTEREST MARGIN, SYSTEMIC RISK, ACCOUNTABILITY, INTERNATIONAL BANKING, FINANCIAL STABILITY, BANQUE DE FRANCE, INTERNATIONAL AUDITING STANDARDS, SUBSIDIARIES, VALUE, PENSIONS, EUROPEAN CENTRAL BANK, CREDIT, BUDGETS, COLLATERALIZATION, PEER REVIEW, SUPERVISORY FRAMEWORK, INTERNAL CONTROLS, MANDATES, PROPERTY, FOREIGN BANKS, AFFILIATES, BALANCE SHEET, SUPERVISORY SANCTIONS, FOREIGN EXCHANGE, CREDIT POLICIES, CONSOLIDATED FINANCIAL STATEMENTS, RISK FACTORS, VALUE AT RISK MODELS, NEW ENTRANTS, PRUDENTIAL REQUIREMENTS, LEGAL PROTECTION, RISK, CLEARING SYSTEMS, ASSOCIATED COMPANIES, FINANCIAL MARKETS, BANKING, RISK MEASUREMENT, RISK MANAGEMENT, ENTREPRENEURSHIP, UNIVERSAL BANKING, BANK FAILURE, GOVERNMENTS, CAPITAL STANDARDS, COST OF CAPITAL, ECONOMIC CONDITIONS, AUDITING, CAPITAL ADEQUACY RATIOS, SPECIALIZED BANKS,
Online Access:	http://documents.worldbank.org/curated/en/2015/09/25074442/bulgaria-detailed-assessment-observance-basel-core-principles-effective-banking-supervision https://hdl.handle.net/10986/22678
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