BNB: EU Stress Test Proves Stability of Bulgarian Banks

The Bulgarian National Bank has pointed out the stability of the country's banks. File photo

The European bank groups represented in Bulgaria, which took part part in the pan-European bank stress tests demonstrated stability and high capital adequacy, the Bulgarian National Bank declared in a statement.

The European banking system stress tests were organized according to a decision of ECOFIN and were coordinated by the Committee of European Banking Supervisors (CEBS) in cooperation with the European Central Bank, the European Commission, and the consolidating national supervisors.

The BNB points out that the purpose of the tests was to evaluate the capacity of the European banking system to meet hypothetical future unfavorable developments in terms of credit, market, and sovereign risks, to refute any suspicions of weaknesses in the sector, and to restore lending in the interbank market.

A total of 91 banks from 20 EU member states participated in the tests - 26 large pan-European banking institutions, and 65 banks of key importance for their national banking systems; seven of the banks failed the stress tests. These banks comprise over 65% of the consolidated assets of the EU banking system. The stress tests were conducted on the highest consolidated group level by the banks themselves in close cooperation with the consolidating national supervisors.

The bank groups participating in the European survey are represented in Bulgaria by fifteen credit institutions. Out of them 4 are from Greece, 3 from France, 1 from each Austria, Belgium, Germany, Italy, Ireland, Slovenia, Hungary and the Netherlands. These institutions’ market share approximates 76% of the overall Bulgarian banking system.

This list includes Raiffeisenbank Bulgaria (a subsidiary of the Austrian Reiffeisenbank); CIBank (owned by the Belgian KBC Group); BNP Paribas, Sofia Branch; Emporiki Bank Bulgaria (owned by the French Credit Agricole); Societe Generale Expressbank (owned by the French Societe Generale; MKB UnionBank (owned by the German Bayerische Landesbank); United Bulgarian Bank (owned by the National Bank of Greece); Alpha Bank, Bulgarian branch (owned by the Greek Alpha Bank); Piraeus Bank (Greece); DSK Bank (owned by the Hungarian OTP Bank); the Bulgarian-American Credit Bank (in which the Allied Irish Bank is the major shareholder); Unicredit Bulbank (a subsidiary of the Italian Unicredit); ING Bank, Sofia branch (owned by the Dutch ING bank); NLB Banka Sofia (owned by the Slovenian New Ljubljana Bank), and Postbank (owned by the Greece EFG Eurobank).

The specific results of the conducted stress tests of the European banking system can be found HERE

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