The Bulgarian Banking System
59.8 billion levs have been held in Bulgarian banks in May 2009 which is a decrease by 437 levs, according to the Bulgarian National Bank (BNB). This is the second most serious decrease of the amount of money in the Bulgarian banks since the beginning of the year. This is mainly due to the fact that the amounts which foreign banks and other foreign credit institutions keep in Bulgaria have decreased by 390 million levs in May 2009. Despite this the amount which they keep here is not small – 15.4 billion levs.
In comparison personal savings total 22.8 billion levs and the total of the funds of companies in Bulgarian banks is 19 billion levs. The personal savings have decreased by 100 million levs despite the attracting interest rates of savings. The total amount of the money in companies’ accounts has slightly increased.
From January 2009 the level of the money in the accounts held at the Bulgarian banks tend to fluctuate both ways on almost permanent basis. The most significant withdrawals took place in January and in May. In January about 800 million levs have been withdrawn, 500 million levs of them were withdrawn by foreign banks. The Bulgarian companies withdrew 600 million levs but personal savings increased by 340 million levs.
The personal accounts have a positive balance while the companys’ accounts are in the red. In May individuals held 22.8 billion levs in their accounts while they had credits amassing to 17.7 billion levs. The companies at the same time held 19 billion levs into their accounts but they owe the banks 32 billion levs. On the whole the Bulgarian banking system is one of the few in the EU which is profitable. Its profit in the end of May 2009 was 402 billion levs. The liquidity index is 20.6% which means that 20% of the attracted funds in the banks can be immediately paid in cash if requested.