A Liquidity Assessment of the Bulgarian Banking System (2009–2013)

“Narodnostopanski arhiv” Journal Issue 3, 2014

Posted: 25 Jul 2016

See all articles by Georgi Angelov

Georgi Angelov

D. A. Tsenov Academy of Economics

Date Written: September 30, 2014

Abstract

Liquidity is of great significance for the stability of credit institutions and the banking system as a whole. In normal circumstances, the capital adequacy of banks is determined as a key factor for stability. But, during economic crisis, the susceptibility of credit institutions to a shortage of available cash resources in order to cover depositors’ withdrawals is intensified. This directs our attention toward effective liquidity management. Financial cataclysms on a global scale caused by the crisis in the USA during 2007, and the speedy “infection” of the economies of the developed countries showed that gaps in the management of financial institutions can lead to considerable losses on a world-wide scale. The aim of this study is to assess the liquidity situation of the Bulgarian banking system based on generally accessible (public) information by applying ratio analysis tools. Through the use of key indicators of liquidity assessment, the trends in its development for 2007-2013 are presented. A general assessment of the liquidity situation for banks in Bulgaria is outlined.

Keywords: bank; banking system; bank liquidity; liquidity ratios; assets and liabilities; credits and deposits

JEL Classification: G21

Suggested Citation

Angelov, Georgi, A Liquidity Assessment of the Bulgarian Banking System (2009–2013) (September 30, 2014). “Narodnostopanski arhiv” Journal Issue 3, 2014, Available at SSRN: https://ssrn.com/abstract=2813951

Georgi Angelov (Contact Author)

D. A. Tsenov Academy of Economics ( email )

2 Em. Chakarov str.
Svishtov, Veliko Tarnovo 5250
Bulgaria

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
235
PlumX Metrics