The newly released research report by ELANA Trading reviewed the Bulgarian banking sector development from 2003 to 2010.
ELANA Trading analysts argue the expectations of many international analysts for severe banking crisis in Bulgaria proved to be only speculations. The local banking system managed to maintain the level of assets and no substantial decline of credits was posted. In the same time, bad loans increased but cumulative bank profits exceeded provisions for losses. The increase of NPLs will likely continue and will have implications on the strategy for the development of the system. High interest rates supported the level of deposits and provided stable source of financing for banks.
Our forecastThe growth of the banking sector will accelerate next year and we expect that it will return to the pre-crisis levels of growth in 2013-2014. However, the profitability of banks will be supported by the decline of interest rates on deposits and the slow expansion.
Go to report page