Key changes in banking supervision
The National Assembly has adopted at the second reading important amendments to the Credit Institutions Act, which harmonize Bulgarian legislation with European directives. The measures aim to strengthen independence and transparency in the banking sector.
The changes include strict rules for the declaration of assets and conflicts of interest for the governing bodies of the BNB.
Key highlights:
- Independence of the BNB: A 14-year term is introduced for members of the governing bodies, with the exception of the Governor.
- Declaration of interests: Members of the Governing Council and employees will now declare held assets, including bonds, investment funds, and hedge funds.
- Regulation of branches from third countries: A licensing regime is introduced for banks with headquarters outside the EU, with specific requirements for capital adequacy provided.
- Systemic importance: The BNB will assess branches with assets over 40 billion euros for risks to financial stability.
Sanctions for non-compliance
The legislative changes introduce effective control mechanisms through periodic financial sanctions. For banks, these reach up to 5% of the average daily turnover, and for senior executives – up to 50,000 euros for failure to comply with legal obligations.