site.btaSuspended from Office Corpbank Executive Directors Alert Central Bank

Sofia, August 6 (BTA) - The executive directors of the Corporate Commercial Bank (Corpbank), suspended from office, have alerted the Bulgarian National Bank (BNB, central bank) requesting to impose an administrative penalty under the Credit Institutions Act (CIA), reads a message released on behalf of the directors. 

Corpbank, which is this country's fourth biggest lender, suspended all operations on June 21 after an SMS-triggered panic run by depositors. The central bank placed Corpbank under special supervision after it announced that it had run out of liquid assets.

According to CIA, a fine of 2,000 to 5,000 leva is imposed for the spreading of false information or circumstances undermining the good name of a bank and the confidence in it and the fine for repeated offence is 3,000 to 10,000 leva. If the offence has been performed through the mass media the fine is 5,000 to 10,000 leva and for repeated offence - 8,000 to 20,000 leva, the message recalls.
  
The directors' actions has been prompted by an interview granted by MP and Chair of the National Assembly Budget and Finance Committee Chair Yordan Tsonev granted for the Hello Bulgaria show of Nova TV. According to them, Tsonev has levelled serious accusations at Corpbank and has directly appealed to the clients to withdraw their deposits. They voice fears that the suggestions about an irreversible crisis and the alleged emergence of conditions to declare Corpbank bankrupt, may have irremediable consequences for the credit institution.

The report of the BNB conservators do not contain any data about insolvency or criminal violation of the banking legislation on the part of Corpbank, the directors say. They also note that the recommendations of the European Commission and the need of a special law on Corpbank have not been published anywhere.