Borrowing money, In the media

Banking system in Bulgaria reported a profit for 2012 of 525 million Levs

0 Comments 23 May 2013

Nearly 2 million Bulgarians have two loans, it is clear from the Annual Report of the Bank for the year 2012. 31 banks and 165 financial institutions submit data about distributed loans to the Central Credit Register at BNB. In CCR are registered 2 million Bulgarians and 97 thousand companies with loans.


There were a number of 4,025 million outstanding credits at the end of 2012, and their value was 62.766 billion Levs. So it appears that most people with loans have taken at least two credits. Of course, there are people with only one loan, and others with more than a dozen fast loans. The largest share of loans is to individuals with a residual debt to 5 thousand Levs (66.4%), and the most loans of companies are between 5 and 50 thousand Levs (37.9%).


Information about the loans in the CCR includes data about their current state and the past due and repaid loans for 5 years. Credit history is used by banks to assess the customers who want loans. Everyone is entitled every 12 months free of charge to check his credit history.


Slow recovery of the economy has a negative impact on lending, according to a report by the BNB. Demand for credit by businesses is low due to the uncertainty of economic development. Citizens increase their deposits and prefer to pay off old loans rather than seek new ones. However, the banking system reported a profit for 2012 of 525 million Levs, which is 51 million Levs (10.8%) more than in 2011 and the capital indicators of the local banks are much higher than average in the EU.


The total capital adequacy ratio at the end of December was 16.64% (17.55% at the end of 2011). Capital surplus (excess capital above minimum requirements) of 2.6 billion Levs provides resources to cover the loans deteriorated, according to the report. In none of the observed institutions are prerequisites for capital erosion, says the report of the Bank.

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