News Column

Bulgarian banks' end-2013 capital adequacy ratio climbs y/y to 16.85%, above regulatory minimum

February 4, 2014

The capital adequacy ratio (CAR) of Bulgaria's banking system improved by 0.19pps y/y to 16.85% at end-2013 as banks grew their Tier I capital and lowered their specific provisions for credit risk, according to central bank data. The ratio, which is indicative for the ability of banks to absorb risks arising from lending activity, remained substantially above the regulatory minimum of 12% It, however, deteriorated by 0.04pps from end-September. The Tier I CAR added 0.88pps y/y to 16.04% as of end-2013, remaining unchanged from end-September. Rising capital adequacy represents a healthy buffer to the system in the light of rising bad exposures and implies resilience to adverse macroeconomic environment which is especially important given the stagnant loan growth.

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Source: IntelliNews - Weekly Reports

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