Capital adequacy ratio of banks in Bulgaria drops to 16.7% at end-June 2012.

By bne IntelliNews August 1, 2012
The capital adequacy ratio (CAR) of the local banking system deteriorated by 1 percentage point in a year and 0.8 points in a quarter to 16.74% as of the end of June but remained comfortably above the minimum of 12%, according to data of the central bank. The deterioration in the ratio accelerated significantly from the 0.14pps annual drop registered in March. The Tier I CAR fell 0.35 points y/y and 0.65 points q/q to 15.19% as of the end of June. This is the first decrease in the ratio since Sep 2008 and indicates a deterioration in asset quality and rising provisions.

Capital adequacy ratio of banks in Bulgaria drops to 16.7% at end-June 2012.

Related Articles

EC urges Bulgaria to comply with EU rules on free movement of capital.

The EC has sent a reasoned opinion to Bulgaria over failure to comply with EU rules on the free movement of capital, the EC said on its website. The privatisation act in Bulgaria introduces ... more

Govt seeks delay of antitrust rules violation procedure against Bulgaria.

Bulgaria will be seeking an extension of the court procedure filed by the EC against the country over irregularities found in the assignment of digital broadcast spectrum, transport minister ... more

Bulgarians hold EUR 100mn in deposits in Cyprus.

Bulgarian individuals and companies hold EUR 100mn in Cypriot banks according to ECB data, BTA reported quoting Reuters. The largest EU depositors in the crisis-hit country are Greece with EUR ... more