Feb 15 Bulgaria’s central bank on Monday
launched an independent asset quality review of commercial banks
in an effort to restore trust in the banking system after the
collapse of its fourth-largest lender in 2014.
The central bank has approved auditors who will check the
credit portfolios of the 22 banks that operate in the Balkan
country under European Central Bank methodology that has been
adapted to the Bulgarian banking sector’s size and specifics.
Following the review, the central bank will carry out stress
tests on the banks at the end of July to check their ability to
absorb unexpected losses from hypothetical shocks and establish
whether lenders would need to bolster their capital.
The results of both the review a…
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