Economy
ECB to assess six Bulgarian banks, including unit of Hungary's OTP
In July Bulgaria, which joined the EU in 2007, applied to join the banking union, a step toward the Black Sea state’s aim to enter the “waiting room" for euro zone membership.
The ECB, however, has resisted granting Bulgaria a fast track to euro membership, saying its banks require tougher supervision.
“The comprehensive assessment is required as part of the process of establishing close cooperation between the ECB and the national competent authority of an EU Member State whose currency is not the euro," the ECB said in a statement.
The assessment of the three largest banks in terms of assets, UniCredit Bulbank, DSK Bank, controlled by Hungary’s OTP and United Bulgarian Bank, as well as the largest three locally-owned First Investment Bank, Central Cooperative Bank and Investbank will start in November 2018 and results are expected in July 2019.
The cut-off date for the exercise, comprising an asset quality review and a stress test, will be 31 December 2018, the ECB said.
The ECB, however, has resisted granting Bulgaria a fast track to euro membership, saying its banks require tougher supervision.
“The comprehensive assessment is required as part of the process of establishing close cooperation between the ECB and the national competent authority of an EU Member State whose currency is not the euro," the ECB said in a statement.
The assessment of the three largest banks in terms of assets, UniCredit Bulbank, DSK Bank, controlled by Hungary’s OTP and United Bulgarian Bank, as well as the largest three locally-owned First Investment Bank, Central Cooperative Bank and Investbank will start in November 2018 and results are expected in July 2019.
The cut-off date for the exercise, comprising an asset quality review and a stress test, will be 31 December 2018, the ECB said.
