Reuters: Bulgaria’s C-Bank Watching Lenders More Closely Amidst Greek Crisis

Bulgaria’s central bank has asked local lenders to report on outgoing transfers twice a day, increasing its vigilance in view of the debt crisis in neighbouring Greece, Reuters reported on Tuesday, citing three banking sources.

With close trade and investment links with its southern neighbour and four Greek-owned banks holding about a fifth of the assets of Bulgaria’s banking system, Bulgaria is considered potentially vulnerable to fallout from the Greek crisis.

Bulgaria’s central bank said in late June that measures are in place to insulate Greek-owned banks from contagion. It also said the banks are financially independent from their parents, they hold no Greek government securities, and have a capital adequacy and liquidity levels higher than the average for banks in Bulgaria.

According to the Reuters sources, the situation remained calm.

"When we have a crisis like the one in Greece, the central bank has to be more vigilant and follow closely what activities are on the market. This is part of their job," according to one of the sources said.

The central bank, BNB, had declined to comment, Reuters said.

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