Bulgaria Law on Banks

A look at the law that regulates the commercial banks of Bulgaria
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This document details the law that regulates the activities of banks in Bulgaria.

The law consists of eighteen chapters that deal with:

  • General provisions;
  • Incorporation and management;
  • Granting and revoking permits for conducting bank operations;
  • Own funds, liquidity and other requirements;
  • Disclosure of conflicts of interest and fiduciary obligations;
  • Relations between banks and between banks and their customers;
  • Credit restrictions;
  • Special rules for certain deposits;
  • Bank secrecy;
  • Maintenance and disclosure of information;
  • Internal controls, accounting and annual accounts;
  • Banking supervision;
  • Conservator;
  • Forced liquidation;
  • Bankruptcy;
  • Voluntary liquidation;
  • Administrative penalty provisions;
  • Issuance of and appeal against administrative enactments.

The chapters include information about:

  • The functions of the bank and the role of the Central bank;
  • Registration of shares, management and representation of the bank,
  • The necessity of a permit to conduct bank activities, functioning of foreign banks, the terms for increase of a bank's capital, revoking of license;
  • The funds-base of the bank, the balance sheet, payment of dividends and investments in real estate;
  • Information on and terms of credits to customers, interest rates;
  • Savings deposits, the management of credit files, documents and reports to be submitted to the Central bank.

The law conclude by listing additional, transitional and final provisions and amendments to the Law on Banks.

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