Bulgaria Financial Sector Assessment Program : Detailed Assessment of Observance--Basel Core Principles for Effective Banking Supervision
This assessment of the current state of the implementation of the Basel core principles (BCP) for effective banking supervision in Bulgaria has been completed as a stand-alone report on the observance of standards and codes undertaken by the intern...
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| Format: | Report |
| Language: | English en_US |
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Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/09/25074442/bulgaria-detailed-assessment-observance-basel-core-principles-effective-banking-supervision http://hdl.handle.net/10986/22933 |
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okr-10986-22933 |
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oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
INTERNATIONAL ACCOUNTING STANDARDS ACCOUNTING PRINCIPLES FINANCIAL SERVICES OPERATIONAL RISK LEGAL PROVISION INTEREST INCOME FINANCE MINISTRIES CLASSIFIED LOANS ACCOUNTING DEPOSITS PRINCIPAL AUTONOMY BANKING INDUSTRY INTEREST BANK OFFICERS FACTORING LAWS SUPERVISORY REGIMES INTERNAL MANAGEMENT INFORMATION NET REALIZABLE VALUE INTERNAL AUDITS BANKING SERVICES BANKING SYSTEMS BOARDS OF DIRECTORS CAPITAL ADEQUACY REORGANIZATION CONNECTED LENDING PRICING PROBABILITY OF DEFAULT PROJECTS INTEREST MARGIN BANKRUPTCY PROBLEM LOANS DIVIDEND POLICY AUDITS BUDGETARY PROCESSES PRESENT VALUE NET PROFIT PUBLIC POLICY TECHNICAL ASSISTANCE PENALTIES LEGAL PROVISIONS SETTLEMENT SYSTEMS OFFSITE SUPERVISION COOPERATIVE BANKS ACCOUNTING POLICIES CHECKING TRANSFERS FINANCIAL INSTITUTIONS DEBT MARKETS FINANCIAL CRISES DEPOSIT INSURANCE BANK LIQUIDITY ENTERPRISES ENFORCEMENT POWERS LEGAL FRAMEWORK SUBSIDIES ASSET CLASSIFICATION GRANTS CREDIT ORIGINATION INFRASTRUCTURE BANKING SECTOR BANKS BANKING RISKS SUPERVISORY AUTHORITIES OPERATIONAL RISKS CAPITAL FINANCIAL TRANSACTIONS AUDITORS FINANCIAL POLICIES SOVEREIGN RISK BANK FAILURES LOAN LOSS PROVISIONS OFF BALANCE SHEET BANK LENDER OF LAST RESORT MANAGEMENT INFORMATION SYSTEMS PRUDENTIAL REGULATIONS BANKING LAWS CAPITALIZATION REGULATORY REPORTS FINANCIAL PERFORMANCE MARKET DISCIPLINE SUBORDINATED DEBT RATING SYSTEMS ASSET MANAGEMENT COMPANIES MARKET RISK TIER 1 CAPITAL SUBSIDIARY CREDIT RISK GOVERNANCE PROFITABILITY INSURANCE TAXATION ACCOUNTING STANDARDS COMMERCIAL BANKS MORTGAGE LOANS TIER 2 CAPITAL CAPITAL REQUIREMENT ACCOUNTING PROCEDURES RISK TAKING PRICING MODELS ON SITE EXAMINATION LENDING LIQUIDITY RATIO BANKING SUPERVISION PROBLEM BANKS BANKING LAW PAYMENT SYSTEMS LIQUID ASSETS INTERNATIONAL BANKS CONSOLIDATION CONSOLIDATED SUPERVISION EXTERNAL AUDITORS ASSET TRANSFERS CAPITAL MARKETS HOLDING COMPANIES REGULATORY FRAMEWORK ONSITE EXAMINATION SMALL BANKS LIQUIDATION GUARANTEES AFFILIATED COMPANIES INDUSTRY BANKING SYSTEM CAPITAL BASE STRATEGIES RESOURCE ALLOCATION ACCOUNTING FRAMEWORK SERVICES LOAN COMMITMENTS HOUSING CREDIT RISK MANAGEMENT HUMAN RESOURCE MANAGEMENT MACROECONOMIC CONDITIONS ASSET MANAGEMENT CENTRAL BANKS SAVING ADEQUATE DISCLOSURE CAPITAL PLANNING ELECTRONIC BANKING BUDGET FINANCIAL STRENGTH INTEREST RATES MIGRATION CRITERIA CAPITAL REQUIREMENTS LEGISLATION LOANS FINANCIAL REPORTING PERIOD FINANCE RETURN ON ASSETS EQUITY BANK SECURITY NET INTEREST MARGIN SYSTEMIC RISK ACCOUNTABILITY INTERNATIONAL BANKING FINANCIAL STABILITY BANQUE DE FRANCE INTERNATIONAL AUDITING STANDARDS SUBSIDIARIES VALUE PENSIONS EUROPEAN CENTRAL BANK CREDIT BUDGETS COLLATERALIZATION PEER REVIEW SUPERVISORY FRAMEWORK INTERNAL CONTROLS MANDATES PROPERTY FOREIGN BANKS AFFILIATES BALANCE SHEET SUPERVISORY SANCTIONS FOREIGN EXCHANGE CREDIT POLICIES CONSOLIDATED FINANCIAL STATEMENTS RISK FACTORS VALUE AT RISK MODELS NEW ENTRANTS PRUDENTIAL REQUIREMENTS LEGAL PROTECTION RISK CLEARING SYSTEMS ASSOCIATED COMPANIES FINANCIAL MARKETS BANKING RISK MEASUREMENT RISK MANAGEMENT ENTREPRENEURSHIP UNIVERSAL BANKING BANK FAILURE GOVERNMENTS CAPITAL STANDARDS COST OF CAPITAL ECONOMIC CONDITIONS AUDITING CAPITAL ADEQUACY RATIOS SPECIALIZED BANKS |
| spellingShingle |
INTERNATIONAL ACCOUNTING STANDARDS ACCOUNTING PRINCIPLES FINANCIAL SERVICES OPERATIONAL RISK LEGAL PROVISION INTEREST INCOME FINANCE MINISTRIES CLASSIFIED LOANS ACCOUNTING DEPOSITS PRINCIPAL AUTONOMY BANKING INDUSTRY INTEREST BANK OFFICERS FACTORING LAWS SUPERVISORY REGIMES INTERNAL MANAGEMENT INFORMATION NET REALIZABLE VALUE INTERNAL AUDITS BANKING SERVICES BANKING SYSTEMS BOARDS OF DIRECTORS CAPITAL ADEQUACY REORGANIZATION CONNECTED LENDING PRICING PROBABILITY OF DEFAULT PROJECTS INTEREST MARGIN BANKRUPTCY PROBLEM LOANS DIVIDEND POLICY AUDITS BUDGETARY PROCESSES PRESENT VALUE NET PROFIT PUBLIC POLICY TECHNICAL ASSISTANCE PENALTIES LEGAL PROVISIONS SETTLEMENT SYSTEMS OFFSITE SUPERVISION COOPERATIVE BANKS ACCOUNTING POLICIES CHECKING TRANSFERS FINANCIAL INSTITUTIONS DEBT MARKETS FINANCIAL CRISES DEPOSIT INSURANCE BANK LIQUIDITY ENTERPRISES ENFORCEMENT POWERS LEGAL FRAMEWORK SUBSIDIES ASSET CLASSIFICATION GRANTS CREDIT ORIGINATION INFRASTRUCTURE BANKING SECTOR BANKS BANKING RISKS SUPERVISORY AUTHORITIES OPERATIONAL RISKS CAPITAL FINANCIAL TRANSACTIONS AUDITORS FINANCIAL POLICIES SOVEREIGN RISK BANK FAILURES LOAN LOSS PROVISIONS OFF BALANCE SHEET BANK LENDER OF LAST RESORT MANAGEMENT INFORMATION SYSTEMS PRUDENTIAL REGULATIONS BANKING LAWS CAPITALIZATION REGULATORY REPORTS FINANCIAL PERFORMANCE MARKET DISCIPLINE SUBORDINATED DEBT RATING SYSTEMS ASSET MANAGEMENT COMPANIES MARKET RISK TIER 1 CAPITAL SUBSIDIARY CREDIT RISK GOVERNANCE PROFITABILITY INSURANCE TAXATION ACCOUNTING STANDARDS COMMERCIAL BANKS MORTGAGE LOANS TIER 2 CAPITAL CAPITAL REQUIREMENT ACCOUNTING PROCEDURES RISK TAKING PRICING MODELS ON SITE EXAMINATION LENDING LIQUIDITY RATIO BANKING SUPERVISION PROBLEM BANKS BANKING LAW PAYMENT SYSTEMS LIQUID ASSETS INTERNATIONAL BANKS CONSOLIDATION CONSOLIDATED SUPERVISION EXTERNAL AUDITORS ASSET TRANSFERS CAPITAL MARKETS HOLDING COMPANIES REGULATORY FRAMEWORK ONSITE EXAMINATION SMALL BANKS LIQUIDATION GUARANTEES AFFILIATED COMPANIES INDUSTRY BANKING SYSTEM CAPITAL BASE STRATEGIES RESOURCE ALLOCATION ACCOUNTING FRAMEWORK SERVICES LOAN COMMITMENTS HOUSING CREDIT RISK MANAGEMENT HUMAN RESOURCE MANAGEMENT MACROECONOMIC CONDITIONS ASSET MANAGEMENT CENTRAL BANKS SAVING ADEQUATE DISCLOSURE CAPITAL PLANNING ELECTRONIC BANKING BUDGET FINANCIAL STRENGTH INTEREST RATES MIGRATION CRITERIA CAPITAL REQUIREMENTS LEGISLATION LOANS FINANCIAL REPORTING PERIOD FINANCE RETURN ON ASSETS EQUITY BANK SECURITY NET INTEREST MARGIN SYSTEMIC RISK ACCOUNTABILITY INTERNATIONAL BANKING FINANCIAL STABILITY BANQUE DE FRANCE INTERNATIONAL AUDITING STANDARDS SUBSIDIARIES VALUE PENSIONS EUROPEAN CENTRAL BANK CREDIT BUDGETS COLLATERALIZATION PEER REVIEW SUPERVISORY FRAMEWORK INTERNAL CONTROLS MANDATES PROPERTY FOREIGN BANKS AFFILIATES BALANCE SHEET SUPERVISORY SANCTIONS FOREIGN EXCHANGE CREDIT POLICIES CONSOLIDATED FINANCIAL STATEMENTS RISK FACTORS VALUE AT RISK MODELS NEW ENTRANTS PRUDENTIAL REQUIREMENTS LEGAL PROTECTION RISK CLEARING SYSTEMS ASSOCIATED COMPANIES FINANCIAL MARKETS BANKING RISK MEASUREMENT RISK MANAGEMENT ENTREPRENEURSHIP UNIVERSAL BANKING BANK FAILURE GOVERNMENTS CAPITAL STANDARDS COST OF CAPITAL ECONOMIC CONDITIONS AUDITING CAPITAL ADEQUACY RATIOS SPECIALIZED BANKS International Monetary Fund World Bank Bulgaria Financial Sector Assessment Program : Detailed Assessment of Observance--Basel Core Principles for Effective Banking Supervision |
| geographic_facet |
Europe and Central Asia Bulgaria |
| description |
This assessment of the current state of
the implementation of the Basel core principles (BCP) for
effective banking supervision in Bulgaria has been completed
as a stand-alone report on the observance of standards and
codes undertaken by the international monetary fund (IMF)
and the World Bank during March of 2015 at the request of
the Bulgarian authorities. It reflects the regulatory and
supervisory framework in place as of the date of the
completion of the assessment. The Bulgarian National Bank
(BNB) has an internal governance structure which, by vesting
the majority of the powers of supervision in the Deputy
Governor for banking supervision, exposes the supervisory
function to risks. Under the BNB’s legal structure,
supervision and enforcement is dissociated from the
Governing Council, and the Governing Council has no right to
compel transparency of decision making or to impose a
framework to ensure consistency in the use of the
enforcement regime. There are material concerns that the BNB
is too resource constrained to deliver effective minimum
levels of supervision. Despite a broad range of supervisory
powers, there are some gaps in the legal framework that
unduly restrict the BNB’s locus. The BNB has a good
understanding of risk and many strong practices, and also
making good use of international standards and guidelines,
but there are some important system wide vulnerabilities.
The assessment team reviewed the framework of laws, rules,
and guidance and held extensive meetings with officials of
the BNB, and additional meetings with the Finance Ministry,
auditing firms, professional bodies, and banking sector
participants. The authorities provided a comprehensive
self-assessment of the CPs, as well as detailed responses to
additional questionnaires, and facilitated access to
supervisory documents and files on a confidential basis as
well as staff and systems. |
| format |
Report |
| author |
International Monetary Fund World Bank |
| author_facet |
International Monetary Fund World Bank |
| author_sort |
International Monetary Fund |
| title |
Bulgaria Financial Sector Assessment Program : Detailed Assessment of Observance--Basel Core Principles for Effective Banking Supervision |
| title_short |
Bulgaria Financial Sector Assessment Program : Detailed Assessment of Observance--Basel Core Principles for Effective Banking Supervision |
| title_full |
Bulgaria Financial Sector Assessment Program : Detailed Assessment of Observance--Basel Core Principles for Effective Banking Supervision |
| title_fullStr |
Bulgaria Financial Sector Assessment Program : Detailed Assessment of Observance--Basel Core Principles for Effective Banking Supervision |
| title_full_unstemmed |
Bulgaria Financial Sector Assessment Program : Detailed Assessment of Observance--Basel Core Principles for Effective Banking Supervision |
| title_sort |
bulgaria financial sector assessment program : detailed assessment of observance--basel core principles for effective banking supervision |
| publisher |
Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/09/25074442/bulgaria-detailed-assessment-observance-basel-core-principles-effective-banking-supervision http://hdl.handle.net/10986/22933 |
| _version_ |
1764452443208286208 |
| spelling |
okr-10986-229332021-04-23T14:04:11Z Bulgaria Financial Sector Assessment Program : Detailed Assessment of Observance--Basel Core Principles for Effective Banking Supervision International Monetary Fund World Bank INTERNATIONAL ACCOUNTING STANDARDS ACCOUNTING PRINCIPLES FINANCIAL SERVICES OPERATIONAL RISK LEGAL PROVISION INTEREST INCOME FINANCE MINISTRIES CLASSIFIED LOANS ACCOUNTING DEPOSITS PRINCIPAL AUTONOMY BANKING INDUSTRY INTEREST BANK OFFICERS FACTORING LAWS SUPERVISORY REGIMES INTERNAL MANAGEMENT INFORMATION NET REALIZABLE VALUE INTERNAL AUDITS BANKING SERVICES BANKING SYSTEMS BOARDS OF DIRECTORS CAPITAL ADEQUACY REORGANIZATION CONNECTED LENDING PRICING PROBABILITY OF DEFAULT PROJECTS INTEREST MARGIN BANKRUPTCY PROBLEM LOANS DIVIDEND POLICY AUDITS BUDGETARY PROCESSES PRESENT VALUE NET PROFIT PUBLIC POLICY TECHNICAL ASSISTANCE PENALTIES LEGAL PROVISIONS SETTLEMENT SYSTEMS OFFSITE SUPERVISION COOPERATIVE BANKS ACCOUNTING POLICIES CHECKING TRANSFERS FINANCIAL INSTITUTIONS DEBT MARKETS FINANCIAL CRISES DEPOSIT INSURANCE BANK LIQUIDITY ENTERPRISES ENFORCEMENT POWERS LEGAL FRAMEWORK SUBSIDIES ASSET CLASSIFICATION GRANTS CREDIT ORIGINATION INFRASTRUCTURE BANKING SECTOR BANKS BANKING RISKS SUPERVISORY AUTHORITIES OPERATIONAL RISKS CAPITAL FINANCIAL TRANSACTIONS AUDITORS FINANCIAL POLICIES SOVEREIGN RISK BANK FAILURES LOAN LOSS PROVISIONS OFF BALANCE SHEET BANK LENDER OF LAST RESORT MANAGEMENT INFORMATION SYSTEMS PRUDENTIAL REGULATIONS BANKING LAWS CAPITALIZATION REGULATORY REPORTS FINANCIAL PERFORMANCE MARKET DISCIPLINE SUBORDINATED DEBT RATING SYSTEMS ASSET MANAGEMENT COMPANIES MARKET RISK TIER 1 CAPITAL SUBSIDIARY CREDIT RISK GOVERNANCE PROFITABILITY INSURANCE TAXATION ACCOUNTING STANDARDS COMMERCIAL BANKS MORTGAGE LOANS TIER 2 CAPITAL CAPITAL REQUIREMENT ACCOUNTING PROCEDURES RISK TAKING PRICING MODELS ON SITE EXAMINATION LENDING LIQUIDITY RATIO BANKING SUPERVISION PROBLEM BANKS BANKING LAW PAYMENT SYSTEMS LIQUID ASSETS INTERNATIONAL BANKS CONSOLIDATION CONSOLIDATED SUPERVISION EXTERNAL AUDITORS ASSET TRANSFERS CAPITAL MARKETS HOLDING COMPANIES REGULATORY FRAMEWORK ONSITE EXAMINATION SMALL BANKS LIQUIDATION GUARANTEES AFFILIATED COMPANIES INDUSTRY BANKING SYSTEM CAPITAL BASE STRATEGIES RESOURCE ALLOCATION ACCOUNTING FRAMEWORK SERVICES LOAN COMMITMENTS HOUSING CREDIT RISK MANAGEMENT HUMAN RESOURCE MANAGEMENT MACROECONOMIC CONDITIONS ASSET MANAGEMENT CENTRAL BANKS SAVING ADEQUATE DISCLOSURE CAPITAL PLANNING ELECTRONIC BANKING BUDGET FINANCIAL STRENGTH INTEREST RATES MIGRATION CRITERIA CAPITAL REQUIREMENTS LEGISLATION LOANS FINANCIAL REPORTING PERIOD FINANCE RETURN ON ASSETS EQUITY BANK SECURITY NET INTEREST MARGIN SYSTEMIC RISK ACCOUNTABILITY INTERNATIONAL BANKING FINANCIAL STABILITY BANQUE DE FRANCE INTERNATIONAL AUDITING STANDARDS SUBSIDIARIES VALUE PENSIONS EUROPEAN CENTRAL BANK CREDIT BUDGETS COLLATERALIZATION PEER REVIEW SUPERVISORY FRAMEWORK INTERNAL CONTROLS MANDATES PROPERTY FOREIGN BANKS AFFILIATES BALANCE SHEET SUPERVISORY SANCTIONS FOREIGN EXCHANGE CREDIT POLICIES CONSOLIDATED FINANCIAL STATEMENTS RISK FACTORS VALUE AT RISK MODELS NEW ENTRANTS PRUDENTIAL REQUIREMENTS LEGAL PROTECTION RISK CLEARING SYSTEMS ASSOCIATED COMPANIES FINANCIAL MARKETS BANKING RISK MEASUREMENT RISK MANAGEMENT ENTREPRENEURSHIP UNIVERSAL BANKING BANK FAILURE GOVERNMENTS CAPITAL STANDARDS COST OF CAPITAL ECONOMIC CONDITIONS AUDITING CAPITAL ADEQUACY RATIOS SPECIALIZED BANKS This assessment of the current state of the implementation of the Basel core principles (BCP) for effective banking supervision in Bulgaria has been completed as a stand-alone report on the observance of standards and codes undertaken by the international monetary fund (IMF) and the World Bank during March of 2015 at the request of the Bulgarian authorities. It reflects the regulatory and supervisory framework in place as of the date of the completion of the assessment. The Bulgarian National Bank (BNB) has an internal governance structure which, by vesting the majority of the powers of supervision in the Deputy Governor for banking supervision, exposes the supervisory function to risks. Under the BNB’s legal structure, supervision and enforcement is dissociated from the Governing Council, and the Governing Council has no right to compel transparency of decision making or to impose a framework to ensure consistency in the use of the enforcement regime. There are material concerns that the BNB is too resource constrained to deliver effective minimum levels of supervision. Despite a broad range of supervisory powers, there are some gaps in the legal framework that unduly restrict the BNB’s locus. The BNB has a good understanding of risk and many strong practices, and also making good use of international standards and guidelines, but there are some important system wide vulnerabilities. The assessment team reviewed the framework of laws, rules, and guidance and held extensive meetings with officials of the BNB, and additional meetings with the Finance Ministry, auditing firms, professional bodies, and banking sector participants. The authorities provided a comprehensive self-assessment of the CPs, as well as detailed responses to additional questionnaires, and facilitated access to supervisory documents and files on a confidential basis as well as staff and systems. 2015-11-10T17:25:19Z 2015-11-10T17:25:19Z 2015-10 Report http://documents.worldbank.org/curated/en/2015/09/25074442/bulgaria-detailed-assessment-observance-basel-core-principles-effective-banking-supervision http://hdl.handle.net/10986/22933 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Financial Sector Assessment Program Economic & Sector Work Europe and Central Asia Bulgaria |