interrelationships among safety net participants: the case of bulgaria
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IADI Fourth Annual Conference - Taipei, Taiwan, 28 - 29 September 2005.TRANSCRIPT
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Interrelationships Among Safety Net Participants: the Case of Bulgaria
Roumyana MarkovaInternational Cooperation and PR Dept.
Bulgarian Deposit Insurance Fund
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Safety Net Participants
• Bulgarian National Bank (BNB)
• Banking Supervision Department (with BNB)
• Bulgarian Deposit Insurance Fund
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Bulgarian National Bank
• Introduction of Currency Board in mid 1997
- Lender of Last Resort only in systemic crisis- lending facility: the deposit of the BankingDepartment with the Issue Department
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BNB Banking Supervision Dept.
• Drafts regulations (approved by BNB)
• Supervises banks
• BSD Directorates- Supervision Policy and Methodology- Supervision Administration- On-site Supervision- Off-site Supervision and Analysis- Special Supervision
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Bulgarian Deposit Insurance Fund (BDIF)
• BDIF was established by the Law on Bank Deposit Guaranty passed in April 1998
• BDIF is a legal entity effectively operating as of January 1999
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BDIF Mandate
• Law on Bank Deposit Guaranty (LBDG)- determines and collects banks’ annual and entry premiums- invests its assets in accordance with LBDG provisions - repays the insured amounts of deposits in failed banks
• Law on Bank Bankruptcy (LBB)- administers bank bankruptcy proceedings by controllingthe trustee
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Relationships with BSD/BNB
• LBDG requires BNB to provide:- all the information available on the amount of bank depositsand required for calculating banks’ premiums
- full current information on the financial status of banks inview of assessing the risk associated with DIS implementation
- upon BDIF request BSD may conduct off- and on-siteinspections concerning the deposit base and present the findings
Memorandum of Understanding, Nov 1999- upon failure to pay the premium due within 3 months BDIFnotifies BNB to undertake the measures prescribed in the Lawon Banks
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Relationships with BNB
• Under LBDG- BDIF drafts regulations for LBDG implementation to beapproved by BNB
- BDIF Vice Chairman is designated by BNB- BDIF Annual Report is presented to BNB- BDIF administrative expenses budget, together with reporton its performance is approved by BNB
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Relationships with BSD/BNB
• Under LBB:- BDIF appoints trustees from a list kept by BSD
- BSD and BDIF give statement of opinion to the court forselling a failed bank as an enterprise
- BDIF drafts regulations for LBB implementation to be approved by BNB
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Relationships with Association of Commercial Banks
• Under LBDG:- BDIF Member of the Management Board is designated byAssociation of Commercial Banks
Letter of Cooperation, Aug 2001
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Thank You For Your Attention
Bulgarian Deposit Insurance Fund27 Vladaiska Street, 1606 Sofia, Bulgaria
Tel.: +359 2 953 1217, 953 1318; Fax: +359 2 952 1100E-mail: [email protected]
Internet: http://www.dif.bg