According to the data of the central bank it is also clear that the liquidity buffer is BGN 36.2 billion, and the so-called liquidity coverage, which guarantees the stability of the currency board, is 279%.
There are no shifts in the top 3 despite a series of mergers in 2020.
Five of the 23 banks operating in Bulgaria hold 66.6% of the assets of the entire banking system. Despite the crisis, the total amount at the end of December 2020 increased by BGN 4.8 billion to BGN 124 billion, the BNB reported a few days ago. UniCredit Bulbank, DSK Bank, UBB, Eurobank and First Investment Bank are in the top in terms of assets. 2020 ended without a shift in this top five despite a series of mergers in the sector. These banks manage BGN 82.6 billion.
The equity of the system is also growing - as of the end of December it is by BGN 240 million more than in September and is now BGN 15.4 billion which is BGN 860 million less than reported at the end of December 2019.
According to the data of the central bank it is also clear that the liquidity buffer is BGN 36.2 billion, and the so-called liquidity coverage, which guarantees the stability of the currency board, is 279%.
The main reasons for the reduced profit are the shrinking difference between interest rates on loans and deposits, the slight decline in total revenue from fees and commissions, the sale of mortgaged property at falling or frozen prices, rising costs of financial impairment and shrinking financial assets for trading. The continuing growth of deposits and the growth of banks' own assets operate in the opposite direction.
In the last quarter of 2020, the gross loan portfolio of the banking system increased by BGN 1.2 billion and thus by the end of the year it was already BGN 69.5 billion. The growth was mainly due to loans to non-financial corporations - 1 BGN net loans to households - BGN 392 million. The net value of non-performing loans decreased by BGN 164 million - from BGN 3.1 billion at the end of September to BGN 3 billion at the end of December.
The share of bad loans to their total amount has also shrunk - from 4.39% at the end of September to 4.19% by December.
The crisis has increased the inflow of fresh money to banks - as of December 31, 2020, deposits have increased by BGN 4.6 billion to BGN 105.7 billion. Household money has the largest contribution to this - 2.7 billion BGN.
As of the end of the first crisis year, 108,211 requests for deferral of loan installments totaling BGN 8.7 billion had been submitted, the BNB reported. 89,478 were approved with a total gross amount of just over BGN 8 billion.
As part of the measures against the crisis to help the real economy last year, following a BNB decision, banks proposed a package of measures worth BGN 9.3 billion. The central bank ordered capitalization of the full amount of profit, which was BGN 1.6 billion, which deprived the shareholders of the banks of dividends. The planned increases in the countercyclical capital buffer for 2020 and 2021 were canceled, which left BGN 700 million more in the vaults. Subordinates of BNB Governor Dimitar Radev also ordered the banking system to increase its liquidity by BGN 7 billion by returning its assets abroad.
