According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Bulgaria is scored 4.1 out of maximum 7.0 and ranked 58th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.6 (47th place).
Chart 1. Financial Market Development in Bulgaria. Source: WEF.
Soundness of banks is scored 4.3 bringing Bulgaria into the 96th place.
Chart 2. Soundness of Banks in Bulgaria. Source: WEF.
Banks in Bulgaria are mainly focused on the following areas:
Bulgarian National Bank
Currently there are 26 credit institutions operating in Bulgaria.
In 2018 consolidated banking assets in Bulgaria were 55,235.91 mln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Bulgaria.
Recent structural changes (2013 - 2018) of the banking sector of Bulgaria are summarised in Table 1.
|Number of Opened Banks||0||0||0||0||0||1|
|Number of Closed Banks||0||2||0||1||0||3|
Table 1. Recent structural changes in the banking sector of Bulgaria.
The list of the most recently opened banks in Bulgaria is provided in Table 2.
|BNP Paribas Personal Finance S.A., Bulgaria Branch (new)||June 2018|
Table 2. The most recently opened banks in Bulgaria.
All the credit institutions operating in Bulgaria can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||6|
There are 6 branches of foreign banks from 5 different countries in Bulgaria. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Bulgaria are summarised in Table 5.
Table 5. Deposit guarantee scheme in Bulgaria.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Bulgarian lev) deposit ceiling for Bulgaria is set to A3 (upper medium grade), foreign currency deposit ceiling is Baa2 (lower medium grade).
Chart 4. Deposit Rates in Bulgaria. Source: ECB.