Send to Kindle
The process of raising interest rates in Bulgaria will accelerate in the coming months, the BNB predicts in the traditional publication "Banks in Bulgaria". The Central Bank warns that there are prerequisites for the accumulation of risk in the balance sheet of the banking system.
The banking sector operates in conditions of high inflation and considerable uncertainty, writes the analysis of the "Banking Supervision" department of the BNB for the last quarter of last year.
"Short-term risks in the economic environment were mitigated by the observed weakening of difficulties in supply chains, as well as by the dynamics of energy prices on international markets, which decreased compared to the levels reached in the previous months," the BNB commented.
From there, they predict that the global process of rising interest rates will be felt more seriously in our country in the coming months.
"Although in the immediate term the rapid growth of credit volumes has a positive effect on the profitability of the banking sector, prolonged periods of high credit growth create prerequisites for an increase in indebtedness and accumulation of credit risk in the balance sheet of the banking system."
This may lead to a deterioration of the banks' credit portfolio. They are generally very liquid and well-capitalized.
"Regardless of this, credit institutions should manage their liquidity in accordance with the high degree of uncertainty and the probability of changes in the volume and structure of deposits, caused by unfavorable changes in the financial situation of enterprises and households," the BNB also wrote.
Follow Novinite.com on Twitter and Facebook
Write to us at editors@novinite.com
Информирайте се на Български - Novinite.bg
The Bulgarian National Bank announced extended operating hours at its cash desks today and on Saturday, December 20, in response to heightened public demand
Kubrat Pulev has been dethroned as the regular World Boxing Association champion after suffering a knockout defeat to Russia’s Murat Gassiev
Bulgarian President Rumen Radev met with EU ambassadors at the Danish Embassy on December 4 to discuss pressing challenges facing the European Union
Nearly 60% of the pork available on the Bulgarian market comes from domestic producers
The Governing Council of the Bulgarian National Bank (BNB) has granted preliminary approval to Bulgarian-American Credit Bank AD (BACB) to acquire a controlling stake in Tokuda Bank EAD
North Macedonia’s Prime Minister, Hristijan Mickoski, dismissed the assault on Bulgarian journalist Vladimir Perev as an act of self-inflicted harm
Experts confirm that Bulgaria’s accession to the eurozone on January 1, 2026, remains on track, despite the recent government resignation
Scope Ratings has completed its latest review of Bulgaria and confirmed the country’s long-term credit rating at A- with a stable outlook, alongside short-term ratings of S-1/Stable
At the turn of the year, Bulgaria is preparing to enter 2026 without an approved state budget
In Bulgaria, the common perception that investing is reserved for the wealthy remains widespread, but recent analysis by Freedom24 shows that households can begin investing with modest amounts of 50–100 BGN (approximately €25–50) per month
The euro has been in use since 1999 as a non-cash accounting unit and since 2002 as physical currency.
Pension insurance contributions will not increase in 2026, while pensions themselves will be updated from 1 July under the Swiss indexation formula, resulting in an expected rise of 7–8%.
Bulgaria's Strategic Role in the EU's Drone Wall Defense Initiative
When Politics Means Violence
