The Impact of the Economic Crisis on the Banks’ Financial Results in Bulgaria Cover Image

Отражение на стопанската криза върху финансовите резултати на банките в България
The Impact of the Economic Crisis on the Banks’ Financial Results in Bulgaria

Author(s): Zhelio Vatev
Subject(s): Economy
Published by: Стопанска академия »Д. А. Ценов«

Summary/Abstract: The article investigates the impact of the financial crisis on the profitability, the profits and cost effectiveness of the banking system in our country. The extent to which the crisis affects the financial stability of the banking sector is revealed, taking into account its final financial results. During the analysis the situation and the changes of the following key indicators are examined: income and expenditure, dynamics of net profits, interest income and expenditure, other (non-interest) income and expenditure, net interest income, profitableness of assets, return on net assets and net interest system margin. The research results show that the economic crisis seriously affects the efficiency of the banking sector in our country. Each of the analyzed indicators clearly shows an unfavorable trend toward lowering. It is concluded that the deterioration of profits and profitableness is still within the acceptable limits, but if this trend continues for longer time it may have grounds for serious concern.

  • Issue Year: 2009
  • Issue No: 3
  • Page Range: 24-37
  • Page Count: 14
  • Language: Bulgarian