site.btaParliament Revises Banking Supervision Rules

Sofia, November 29 (BTA) - Parliament adopted conclusively revisions to the Lending Institutions Act aiming to improve the regulatory framework for banking supervision. The revisions comply with recommendations from a financial sector assessment and honour commitments made by the central bank in response to the assessment findings.

The revisions were moved by GERB's Menda Stoyanova.

The changes improve the regulation of the risks related to lending to connected persons (bank administrators, shareholders with qualified holding, persons who control the bank, daughter companies or others).

The revisions bring about changes to the Bulgarian National Bank Act, according to which a transcript shall be kept for all meetings of the central bank's Managing Board which shall be undersigned by the attending members and the person drawing up the transcript. The information about the decisions of the Managing Board shall be published on the website of the bank - except when they contain professional, banking, commercial or another secret.

The central bank Managing Board will apply supervisory measures and measures for early intervention, will give approvals and permissions as provided for by the law.

The new texts say that the vice governors who head the Banking Supervision and the Banking Departments shall exercise their supervision powers and operational leadership independently from the functions of the other central bank departments.