Bulgarian banking system stable despite events in Greece: watchdog

Bulgarian National Bank (BNB) said here on Monday that recent developments in Greece can in no way affect the normal functioning and the stability of the Bulgarian banking system.

"Any actions of the Greek government and central bank about imposing measures on the Greek financial system have no legal effect in Bulgaria and can in no way whatsoever affect the normal functioning and the stability of the Bulgarian banking system," BNB said in a press release.

In connection with the Greek government's decision announcing the holidays of the banks operating in Greece and introducing capital control in Greece, the BNB reiterated that the Bulgarian banking system, including banks with Greek shareholding, is completely independent financially and operationally from the banking systems of other countries.

The Bulgarian banking system, including the banks with Greek shareholding, has no receivables from Greek credit institutions and has no investments in securities of the Greek government, BNB said.

"Negative developments in the banking systems of other countries cannot influence directly on the stability and normal functioning of the Bulgarian banking system," BNB said.

The banking system in Bulgaria operates at very high levels of capital adequacy and liquidity which guarantees its stability, normal functioning and independence from negative developments in neighboring countries, BNB said.

"As a result of the measures consistently applied by BNB, the banks with Greek shareholding maintain levels of liquidity and capital adequacy above the average for the banking system in Bulgaria," the watchdog said.

All the data on the financial position, in combination with the financial and operational independence achieved long before the current situation in Greece, do ensure the banks' transactions on the territory of Bulgaria, BNB added. Endit