BEHAVIOR OF THE BANKING SYSTEM IN THE CONTEXT OF POSTCRISIS ECONOMIC DEVELOPMENT OF BULGARIA

The paper aims to reveal the peculiarities of the development of the Bulgarian banking system and the factors that determine its development. The banking crisis of 1996-1997, the introduction of the Currency board has pushed forward the consolidation of bank capital. Foreign banks have taken on most of the Bulgarian banking market. The Bulgarian banking system is looking stable, with a high liquidity ratio and low inherent risks. Nevertheless, the closure of one Bulgarian bank proved that credit institutions in Bulgaria required close monitoring by the regulator. Will the stabilization of Bulgarian banking sector be insured with the perspective to join the European Banking Union?