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P. Dimitrova
Some Aspects of the Accounting Analysis of Loans Granted
by Commercial Banks
Summary:
The accounting analysis performed in banking institutions is of key importance. It is based on information collected exclusively from current and periodic accounting reports. Based on real accounting data, it is found that there are decreased rates of positive growth in credit portfolios. Granted loans are well-secured while at the same time there is also an increase in the percentage of non-performing loans. When assessing the risk of collateral it is possible to propose the use of "above-the-moderate risk." It is considered necessary for banks to maintain information about the liquidation value of mortgages or pledged assets, rather than the market price.
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Yanko Hristozov
Some Key Issues Regarding the Provision of Solvency
in the Enterprise
Summary:
Liquidity indicators are among the most common and popular financial indicators of solvency in the enterprise. Besides the most commonly used liquidity ratios, the financial cycle provides an additional opportunity to measure the period of total asset turnover and solvency of the company. The purpose of this article is to outline some major issues related to ensuring solvency by taking a range of measures. The problem with the supply of liquidity often stands open for most economic agents, especially during the financial and economic crisis of 21st century. The tasks which are placed are: identification of best practices and formulation of innovative methods in managing the financial cycle in the enterprise and liquidity in general. The research thesis is supported by the claim that liquidity ratios do not provide sufficient information about the payment status of the enterprise for not con-sidering the period of turnover. It is therefore necessary to analyze the state of the financial cycle and implement measures in relation to the improvement of both indicators.
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Georgi Angelov
A LIQUIDITY ASSESSMENT
OF THE BULGARIAN BANKING SYSTEM (2009–2013)
Summary:
Liquidity is of great significance for the stability of credit institutions and the banking system as a whole. In normal circumstances, the capital adequacy of banks is determined as a key factor for stability. But, during economic crisis, the susceptibility of credit institutions to a shortage of available cash resources in order to cover depositors’ withdrawals is intensified. This directs our attention toward effective liquidity management. Financial cataclysms on a global scale caused by the crisis in the USA during 2007, and the speedy “infection” of the economies of the developed countries showed that gaps in the management of financial institutions can lead to considerable losses on a world-wide scale.
The aim of this study is to assess the liquidity situation of the Bulgarian banking system based on generally accessible (public) information by applying ratio analysis tools. Through the use of key indicators of liquidity assessment, the trends in its development for 2007-2013 are presented. A general assessment of the liquidity situation for banks in Bulgaria is outlined.
