Financial experts: No risk to the stability of the banking system in Bulgaria

There is no risk to the stability of the banking system in Bulgaria, after the turbulence the financial industry is going through around the world, financial specialists told BNT. According to them, the central banks of the Eurozone and the United States have reacted quickly and have successfully managed the situation.

The banking system in Bulgaria uses products that protect it from turbulence, observed in the last two weeks abroad, explain financial specialists.

"We don't see any repercussions on our banking system. It is very important to make the distinction that our banks are purely commercially oriented, while the banks where we have seen difficulties in the last 1-2 weeks, we see the problems coming from their investment divisions," said financial consultant Yanko Tsenov.

"Today, there seems to be the first wave of calming in the markets. The Bulgarian financial sector is embryonically simple. Its simplicity is actually the best defence. There are no complex instruments, loans, deposits few government bonds, few corporate bonds. This is what keeps us from turbulence," said Levon Hampartsoumyan.

Banks in the country are also more conservative in their policies.

"The Bulgarian financial system is not very big. It is the size of a medium-sized German city. We should not expect much complexity," said Hampartsumyan.

No change in lending and deposit rates is expected.

"There will be no direct indirect impact on interest rates. It will be negligible in Bulgaria compared to the other factors that determine the planned increase in interest rates on loans and deposits," Hampartsumyan said.

"Other factors will affect interest rates, such as the fact that the ECB has already raised its base rate to 3.5%, which directly affects EURIBOR as an index, but in Bulgaria this does not yet affect the lev indices that shape the floating rates of customers," said Yanko Tsenov.

Financial experts remind that there are no risks in the banking system in the country and clients do not need to worry.