Showing posts with label Bulgaria. Show all posts
Showing posts with label Bulgaria. Show all posts

Wednesday, July 2, 2014

Why the run on banks?

Jul 1st 2014, 17:32 by G.K. | SOFIA

IN A country struggling with rampant corruption, a weak judiciary and unstable government, the Bulgarian banking system has consistently won praise for its stable institutions, high liquidity and low risk. In the past few weeks that system has come under attack in the worst run on banks in 17 years.

The central bank said runs on First Investment Bank (FIB) and Corporate Commercial Bank (CCB), the country’s third and fourth largest lenders, in the past two weeks were part of a “deliberate and systematic attempt to destabilise Bulgaria's banking system”. According to the authorities, criminals tried to disrupt the system by sending e-mails and text messages urging people to withdraw their funds from several large banks.