Image by Bjoertvedt, via Wikimedia Commons.  Accessed 15.02.18

 

One year after a World Bank-IMF sector study and simulated stress tests, there is cautious optimism about Bulgaria's banking sector resilience and stability. However, locally-owned banks are under special scrutiny in a year that will be dominated by restructuring and consolidations involving both these and foreign-owned banks.

From a Big Crash to 'Best Behaviour'
Regardless of its likelihood, Bulgaria's Eurozone goal (2020) is one reason why the banking system is under scrutiny. The other is the lingering legacy of a 2014 bank run that crashed one of the country's largest banks, and almost spread to a second, raising the specter of the 1996 crash.