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Aglika Kaneva
ANALYSIS OF THE CHANGES IN GROSS LOANS AND ADVANCES AND DEPOSITS IN BANKS IN BULGARIA
Summary:
The article presents a trend model for the loans and advances and the deposits of banks in Bulgaria for the period 2007 – 2019. Assuming that the established trends will persist, the model was used to forecast the future values of the loans and advances and the deposits of these banks in 2020 and 2021.
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Bozhidar Bozhinov
Banking Security – Major Manifestations and Aspects
Summary:
The article aims to explore the challenges facing the banking security at the beginning of the new millennium, with a special emphasis on new manifestations of threats to the orderly functioning of the banking institutions. In this aspect, the research thesis that stands out is that threats to banking security reflect changes in the economic, technological and organizational environment in which commercial banks operate.
Banking security is seen as a commitment of the banking institution to ensure safe storage and management of their own assets and their clients' as-sets and the related information, as well as ensure the physical security and safety of clients and employees in the bank offices. The main aspects of banking security are related to provision of physical safety of bank assets, employees and customers; providing information safety of bank assets, as well as the related to management information; providing economic (financial) security of the banking institution.
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Ivan Marinov
BANKING CONSUMER CREDIT –
A COMPONENT OF THE “RETAIL BANKING” BUSINESS SEGMENT
Summary:
The topic of bank financing of consumption is widely discussed in the studies of a number of researchers in the field of banking. The loans by which banking companies meet the personal needs of individuals and households have long been an integral part of people's lives and have had a significant role in the economies of most countries around the world.
This paper aims to clarify the essential characteristics and specificities of banking consumer credit in Bulgaria. To implement the goal set by the author, the texts of the legal framework on consumer lending in the country are considered, and also the positions of Bulgarian and foreign authors on the definition of the term “consumer credit” and practically applied manifesta-tions of individual types of loans for current purposes, offered by commercial banks in Bulgaria.
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Lubomir Lubenov, Anelia Lyubenova
BULGARIA’S FINANCIAL MARKETS IN AGRIBUSINESS – SIZE, STRUCTURE AND DEVELOPMENT TRENDS
Summary:
The aim of the study is to establish the size, structure and financing trends of Bulgaria’s agribusiness. Improving the liquidity and turnover of short-term assets of farms is a goal of paramount importance because it also improves profitability. This necessitates diversification of the sources and instruments to finance the operating capital, such as credits, leasing, factoring, forfeiting, etc. At micro- and macro-level, the provision of information for financial management purposes should be improved to facilitate the access to public and corporate financial markets of short-term and long-term funds for the agribusiness. Public financial markets in Bulgaria’s agribusiness grew steadily from over BGN 1 billion/year during the first reference period of the common agricultural policy of the EU (2007–2013) to BGN 4 billion/year at the end of the 2014–2020 period. They also played an important role in generating reciprocal company financing of over BGN 3 billion/year of over BGN 7 billion/year of all financing in the sector. Structurally, short-term financing accounts for more than 2/3 to 3/4 of all financing.
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Daniel Nikolaev
THE IMPACT OF COMMERCIAL BANKS ON CONVERGENCE IN THE EUROPEAN UNION
Summary:
The paper traces the impact of the international, systematically important banks on the state and phenomena observed in the European Union. It comes to the conclusion that international commercial banks further strengthen the convergence in the banking systems of the member states. In the process of disclosure of these relationships, the macroeconomic factors in the European Union have also been analyzed affecting the returns from the main activity of banking institutions aggregated across member states. By sequential use of the regression model and optimization, values representing the local specificities of the individual member-state towards the Union have been reached. Links have been found that suggest a time lag in the effects observed since the crisis in 2008. Both the international banks and the stock market status in the individual member states indicate that international systematically important banks function as a conductor of extreme cross-border phenomena.
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Meriem Chafik, Mohammed Nabil El Mabrouki
OPPORTUNITIES AND CHALLENGES OF CROSS-BORDER BANKING: FOCUS ON PAN-AFRICAN BANKS
Summary:
There has been a remarkable increase of the regional banking operations across the African continent over the past two decades. This resulted from macroeconomic improvements and economic growth. As a result, African banks increased their geographical operations to emerge as regional groups holding a considerable market share compared to their historically predominant competitors. However, the literature on the pan-African banking industry to understand better this phenomenon is still scarce, which limits having a bigger and inclusive picture of all the key elements influencing this noteworthy growth. This research paper articulates a review based on previous academic research works, and highlights the most important opportunities that regional banks seized, as well as the challenges they faced in order to lead their cross-border banking operations successfully across the region.
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Irina P. Kazandzhieva Yordanova
Too Big to Fail Doctrine and the Financial Safety Net
Summary:
The global financial crisis of 2007-2009 has revealed the negative effects of the TBTF doctrine and the need to take measures to limit government intervention in cases of insolvency of systemically important banks. In the EU, such measures were taken mostly in the supervision of systemically important banks, the capital requirements, the capacity of banks to absorb losses by using domestic resources, and deposit gurantee schemes. The study focuses on the development of a financial safety net. Priority is given to deposit guarantee schemes, which are an essential component of the financial safety net. The evolution of deposit guarantee schemes is studied and an analysis of its impact on the TBTF doctrine is made. The survey has shown that the development of deposit insurance has contradictory effects on the TBTF doctrine.
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Bozhidar Bozhinov
Prospects for Early Prognosis of Crisis Situations in the Banking Sector
Summary:
The first global financial and economic crisis of the present century has once again reminded the economists of the vulnerability of the banking system as far as outside shocks are concerned. Problems in the banking sector can be measured in expenses worth billions of Euros in order to support and stabilize most affected countries. In this respect the present article aims at analyzing the options for predicting banking difficulties and problems by means of models focusing on those based on the signal approach. On the basis of a conducted research an attempt has been made to create a mechanism for improvement of the signal-based models for forecasting crisis situations in the banking sector.
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Orlin Yapryakov
RESTRUCTURING AND CONSOLIDATION OF BULGARIAN BANKS – SYSTEM ANALYSIS AND ASSESSMENT
Summary:
In a contemporary market structure, the establishment of a successful and efficient banking system is an issue of high priority. One of the most important factors is maintaining stability in the banking business especially when the country belongs to economic unions comprising certain countries; therefore, destabilization in the national sector might erode the European one. The period of joining the EU has a positive impact on the Bulgarian banking sector, which leads to significant intensity in the restructuring and consolidation of banks in the country during the period 2006–2020. On the basis of this, the banking systems in the country decrease from twenty-nine banks in 2007 to twenty-four in 2020. The undertaken solutions favor the trend in the banking system, which throughout the last years has been sustainable and competitive.
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Zhelao Vytev
Structural Deviations in Bank Deposits in Bulgaria in Times
of Economic Crisis
Summary:
The article reviews bank deposits in Bulgaria. It specifically analyses how changes in the internal structural components of deposit basis and ratios reflect the general dynamics of bank deposits within the unfavourable economic conditions generated by the economic crisis. Attention is drawn to the structural deviations in bank financing from various aspects, which include sources, maturity, volume and currency structure of deposits on the one hand, and structural deviations of deposits, as determined by bank capital, on the other.
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Petko Angelov
Trends in the Development of Financial Parameters of Banks
in Bulgaria (2008 – 2015)
Summary:
Lending and deposit-taking are key operations to credit institutions. They are of great importance to achieving efficiency in banking. Banking, in turn, should be quantified; a number of factors well-known in banking theory and practice provide the possibility for this. In this respect, the subject of analysis in the study is the profit, profitability, and return of the banks of first and second group in Bulgaria which measure bank efficiency. The purpose of the study is to analyze the bank efficiency for the period 2008 – 2015 on the basis of a ratio analysis and determination of specific values for both groups of banks. As a result of the study, the trends regarding the efficiency of banking in Bulgaria are outlined and the main causes are identified.
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Lubomir Lubenov, Anelia Lyubenova, Ivailo Hristakov
FINANCIAL ISSUES AND FUNDING IN THE BULGARIAN BEEKEEPING SECTOR
Summary:
The aim of the study is to establish the amount of funding in Bulgarian beekeeping and their trends. The goal is achived through an analysis of the tendencies and the main sources of financial means. The study analyses the financial support from European and national funds (the National Beekeeping Program, the de minimis scheme, the Rural Development Program) for over BGN 18 million and from commercial banks and own sources for over BGN 3 million. Together they form financial markets for over BGN 21 million a year in Bulgarian beekeeping. The European and state financial resources intended for Bulgarian beekeeping from the country's membership in the EU are increasing in absolute terms, but are decreasing relative to the total funds. Bulgarian beekeeping has gained access to additional funding, which is not proportionate in comparison with other sectors. Additional financial support is needed per hive for the ecosystem pollination service in order to ensure biodiversity and food security in the EU. The financing of the Bulgarian beekeeping will continue to grow steadily.
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Reneta Dimitrova
THE FINANCIAL LITERACY OF CLIENTS – AN IMPORTANT FACTOR FOR BANKS’ SUCCESSFUL DIGITALIZATION
Summary:
The digitalization of banking operations and the opportunities it provides the clients with has been an important aspect of banking for decades. Banks are among the financial institutions that work actively so that they do not lag behind the global e-business which is moving forward. Successful banking digitalization depends on numerous factors whereas one of them is clients’ financial literacy which significantly predefines how the process of banks’ digital transformation would continue. The research is aimed at outlining banking digitalization’s dependency on the literacy level of clients and the policies to be implemented so that it is successful.
