site.btaBanking System's Liquidity Increases in November

Banking System's Liquidity Increases in November

Sofia, December 30 (BTA) - The strong liquidity position of the banking system and growth of the deposit base and financial result continued in November, the Bulgarian National Bank (BNB) reported on Wednesday.

Liquid assets increased by 689 million leva, reaching 25.9 billion leva in November. The growth was mainly due to cash and cash balances with the central bank, which have a 56.7 per cent share in the structure of liquid assets. The liquidity ratio calculated under BNB Ordinance No. 11 increased to 34.80 per cent. The profit in the banking system amounted to 931 million leva as of November 30, the central bank said.

Compared to end-October, there was an additional 86 million leva impairment on loans and receivables. The total impairment accumulated since the beginning of 2015 amounted to 739 million leva.

The banking system's assets increased by 768 million leva in November, reaching nearly 86.3 billion leva towards the end of the month. The five largest banks had a share of 57.4 per cent in the total assets. The biggest increase in absolute terms was in cash and cash balances at central banks and other demand deposits, which reached 17.0 billion leva or almost 1/5 of the balance sheet total of the banking system. Financial assets portfolios also increased. Debt and equity instruments held by banks grew by 1.2 per cent, while their share in total assets remained unchanged at 13.3 per cent. The growth is due to debt securities issued by the general government sector.

A more significant monthly growth in the banking system's loan portfolio was reported by the loans to non-financial corporations (by 321 million leva). Receivables from other financial corporations and from the general government sector also marked an increase.

The total amount of deposits in the banking system as of end-November was 73.1 billion leva. A significant growth of 626 million leva was reported in the resources from non-financial corporations. The funds from households continued increasing and grew by 365 million leva during the reporting month. They have a 59.8 per cent share in the total deposits of the banking sector.

As of November 30, the banking system's balance sheet capital was 11.3 billion leva, having increased by 17 million during the month.