Development of Bank Services in Bulgaria – from Transition to Sustainability. The Regulatory Perspective

Julia G. Dobreva


The aim of this paper is to review from a regulatory perspective the major trends in the development of the bank services sector in Bulgaria. The analysis covers the period from the first years of transition until present and stresses the importance of regulatory issues. The objective of the research is to prove that bank regulation was a key factor in sustaining the financial sector both during the transition from a centrally planned into the market economy and also today, when it is being confronted with the global financial crisis. The research methodology includes an overview of the research work on financial services development in transition economies and a case study with a retrospective analysis on the development of bank services in Bulgaria in the 90s as well as on current credit portfolio tendencies and their future prospects. The paper highlights the role of the Central Bank, the International Monetary Fund (IMF), the World Bank, and the European Bank for Reconstruction and Development (EBRD) and their contribution to the progress made in the financial services market in Bulgaria. The research results underline the importance of a solid regulatory base for sustaining the development of the financial market in the country and for sound financial management of the bank services sector in the region.



sustainability; bank services; transition economies; regulation; financial crisis; development

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Print ISSN: 1392-0758
Online ISSN: 2029-7319