The Bulgarian National Bank (BNB) said: “If there is one part of the Bulgarian economy as a whole that is already in the euro area in terms of requirements, regulations, good business practices and behavior, it is the banking system. ” he said. ) Deputy Governor Petar Chobanov said this here on Wednesday, saying this was due to the fact that Bulgaria has been a member of the Banking Union since 2020.
Chobanov was speaking at a conference entitled “Together for Success: A Stable Financial Ecosystem and Bulgaria's Progress towards the Eurozone” organized by the Association of Bulgarian Banks (ABB).
The forum, attended by banking and financial executives and economic analysts, aimed to spark a discussion on Bulgaria's macroeconomic situation, the future of the banking sector and ABB's strategic priorities for 2024.
Mr. Chobanov noted that BNB and ABB are communicating effectively and successfully within their respective roles. The central bank acts as a regulator, and ABB acts as a community that must maintain stability and meet all euro area membership criteria and vision for euro area membership. Economic benefits of the introduction of the euro in Bulgaria.
The Deputy Governor of the Central Bank said that Bulgaria's banking system has recorded growth and stability and is expected to have optimal risk management. “Despite having the most stringent requirements for buffers, the banking system has shown understanding in this regard, as banks recognize that this will be beneficial in the long run,” Chobanov said. he pointed out.
Chobanov added: “Our banking system has experienced the smoothest transition in terms of the European Central Bank's interest rate increase cycle. Interest rates did not rise sharply and disruptions were avoided.” “As a central bank, we have always advocated stability, and this is reflected in the highest capital requirements for the banks themselves,” he added.
Chobanov commented that political turmoil in a country calls into question the country's ability to continue on its path. “This applies above all to joining the euro area, and although there is some uncertainty about inflation, which is the last criterion we have to meet, January 1, 2025 is our deadline,” he said. There is no change in the target date.”
“Based on the contacts, knowledge and experience we have accumulated over many years in the public sector, we can guarantee that the current leadership of the Treasury will continue and become even more effective along the path to the euro area.”Europe When it comes to communicating with our partners,” Chobanov said. He said that the recently signed agreement with the European Commission on a partnership agreement to organize an information and communications campaign on the country's transition to the euro shows that Bulgaria is moving in the right direction and maintains the support of its European partners. We see this as a strong signal that this is the case.
