Bulgarian Banks 'Much Better' Than Before KTB Crisis - Prof Hanke

Business » FINANCE | December 26, 2015, Saturday // 12:32
Bulgaria: Bulgarian Banks 'Much Better' Than Before KTB Crisis - Prof Hanke The Bulgarian National Bank (BNB)'s headquarters in downtown Sofia. File photo, BGNES

Bulgaria's banking system is "stronger" now than it was before the crisis at collapsed Corporate Commercial Bank (Corpbank or KTB), Prof Steve Hanke has opined.

Further consolidation of the system should be expected, the Bulgarian National Radio quotes him as saying in an interview.

However, he has warned that stricter oversight on banks has also caused shrinkage in lending, and it has become "very difficult" to take out a loan in Bulgaria.

KTB, formerly Bulgaria's fourth-largest lender, was shut down and placed under supervision from central bank BNB after being exposed to a bank run in June of last year. Months later it was declared insolvent.

The professor has added that, severe as the crisis in Greece still is, it might have a positive effect on Bulgaria by making it a more attractive place for doing business compared to its southern neighbor.

Hanke is a Professor of Applied Economics at the Johns Hopkins University in Baltimore ant a Senior Fellow at the Cato Institute in Washington.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Finance » Be a reporter: Write and send your article
Tags: KTB, Corporate Commercial Bank, Corpbank, Steve Hanke, BNB

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria