|
|
Bulgarian Banking
Description of the Banking System
Bulgaria is predominantly a cash economy but recently the use of debit and credit cards is increasing. The increase is mainly due to two factors, one being that many state organizations have started crediting monthly salaries to the debit cards of their employees, the other is that many banks issue a debit card with the provision of other services like loans and deposits.
Development of services for consumers, such as debit cards, started within the last couple of years, while personal checks are almost unknown and unused as a method of payment. Payment by debit cards is accepted in some of the retail chain of shops and gas stations and is gaining popularity. Checks and credit cards are used mainly by foreigners.
The Bulgarian National Bank (BNB) operates independently of the government and reports directly to the Parliament. The BNB regulates the banking system, but, under the Currency Board Arrangement, has no discretion in setting monetary or exchange rate policy.
There are 34 commercial banks in Bulgaria ; twenty eight are fully licensed and authorized to engage in international transactions and six are branches of foreign banks. Foreigners hold approximately 73% of the total banking capital.
|
|
