Bulgaria Financial Sector Assessment Program : Nonperforming Loans Reduction Strategy
This Technical Note (TN) examines the current state of NPLs in Bulgaria and makes recommendations for a strategy to substantially reduce NPLs. These strategy recommendations were developed based on an assessment of the relevant regulatory and super...
| Main Authors: | , |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/552041497970879525/Bulgaria-Nonperforming-loans-reduction-strategy-technical-note http://hdl.handle.net/10986/27535 |
| Summary: | This Technical Note (TN) examines the
current state of NPLs in Bulgaria and makes recommendations
for a strategy to substantially reduce NPLs. These strategy
recommendations were developed based on an assessment of the
relevant regulatory and supervisory framework and bank
practices, including relevant standards and practices for
accounting treatments, early warning systems, NPL market
development, and collateral valuation. The TN sets forth
macroprudential approaches and other components of a sound
strategy for NPL reduction, including improvements to loan
loss provisioning, income recognition on NPLs, loan
write-downs, early warning systems, collateral valuation,
risk information for investors, and the NPL market. The NPL
management process involves many stakeholders, and their
mutual cooperation is important for success. The Bulgarian
National Bank (BNB), in its capacity as bank supervisor and
regulator and as macroprudential authority for banks, will
be in the lead position on the implementation of key aspects
of the NPL reduction strategy that can achieve progress in
the near term. Broader policies to enhance NPL resolution
entail other stakeholders, including the Ministry of Justice
(MoJ) that would need to engage in the areas of insolvency
and collateral enforcement regimes. |
|---|