Development of the Banking System in Bulgaria during the 2007-2015 period. Impact of the Global Crisis Processes

Abstract

This research is dedicated to the develop­ment of the Bulgarian banking system in the pe­riod 2007-2015 under the impact of the global crisis processes. In the first part of the paper, an analysis has been made of the changes in the su­pervisory framework for the bank risks in the EU Member States, and particularly in Bulgaria, aim­ing at more efficient control and prudential supervi­sion over the credit institutions. Great importance has been attached to the detailed requirements for the banks’ capital adequacy assessment, the introduced five new capital buffers and the role of the stress-tests as a major instrument of risk management in banks. In the second part of the paper, an analysis has been carried out of the de­velopment of the Bulgarian banking system under the impact of the global financial crisis and the eurozone debt crisis. Certain key indicators of the Bulgarian banking system have been examined for the period January 2007 – May 2015, which allows the outlining of the effects of the world crisis pro­cesses on the activity of banks in Bulgaria.banks, banking system, risks in the banking system, banks’ financial indicators, financial crisi