DYNAMIC CREDIT AS A PRECONDITION FOR CREDIT RISK INCREASE

VALENTIN BOSHKILOV

 

Abstract

The first 120 days of 2005 can be defined as one of the most dynamic six months period for the Bulgarian commercial banks. During this period most of the bank managers were pursuing growth, development and expansion by all the legal means. In expectation of the Bulgarian National Bank’s new restrictive measures, bank managers carried out massive advertising campaigns intended to promote low interest bank loans and attract deposits at a high rate of interest. As a result, mortgage rates dropped under 6% and deposit rates of interest increased to 9% per year. That very dynamics in creditor’s activity is a basic precondition for credit risk increase in the bank system.

 

Key words

banks, dynamic credit, credit risk, restrictive measures

 

References

В-к “Банкерь”, 27.08 – 02.09.2005 г., бр.34.
В-к “Капитал”, 10-16 септември 2005 г., бр.36.
Наредба №9 на БНБ за оценка и класификация на рисковите експозиции на банките и за формиране на провизии за загуба от обезценка.
Наредба №22 на БНБ за Централен кредитен регистър на банките.
Наредба №21 за задължителните минимални резерви, които банките поддържат при Българската народна банка.

 

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