site.btaNGO Opposes Merger of DSK Bank, Societe Generale Expressbank

120 ECONOMY-BANK MERGER-OPPOSITION

NGO Opposes Merger of
DSK Bank, Societe Generale
Expressbank


Sofia, October 15 (BTA) - The Association for Consumer Protection (ACP) has petitioned the European Central Bank about the merger of the DSK Bank and Societe Generale Expressbank, ACP said on Monday. The petition was also sent to the Bulgarian Commission for the Protection of Competition, the National Bank of Bulgaria, and the Financial Supervision Commission.

The European Central Bank is petitioned to check whether the merger will lead to a dominant position. ACP argues that after the merged the DSK Bank may dominate and distort the market, particularly in respect of retail banking.

Also, after the merger, about 20 per cent of the assets in the Bulgarian banking system will be controlled by the Hungarian OTP Group. Hungary is not part of the Eurozone and has a floating exchange rate. ACP notes that as a result, the Bulgarian banking system will become very dependable on the decisions of Hungarian Central Bank, in respect of the stability of the parent bank, and as well as with regard to financing from the parent bank to the Bulgarian subsidiary. RY/ZH//