Liquidity of the Banking Sector and the State of Bulgaria’s Economy

Vera Pirimova and Ekaterina Sotirova
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Vera Pirimova: University of National and World Economy, Sofia, Bulgaria
Ekaterina Sotirova: University of National and World Economy, Sofia, Bulgaria

Ikonomiceski i Sotsialni Alternativi, 2018, issue 4, 5-13

Abstract: In recent years, especially after the Cor­porate Commercial Bank crisis from 2014, the banking system’s liquidity has increased sig­nificantly. The share of liquid assets in the sector is about 30%, which exceeds the per­missible requirements from the perspective of profitability. The reasons for this conservatism in bank behavior involve the macro-system’s state as a whole, as well as credit markets. The efficiency of banking institutions is a fac­tor of relatively weak influence. The article’s purpose is to analyze part of the factors which contribute to accumulation of broad liquidity. The used methods include analysis and synthesis.

Keywords: liquidity; macro-system; credit markets (search for similar items in EconPapers)
JEL-codes: G14 G21 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:nwe:iisabg:y:2018:i:4:p:5-13

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