Assets and Liabilities of Commercial Banks in Bulgaria after EU Accession (2007–2008)
Abstract
Following Bulgaria’s accession to the European Union, the banking sector experienced substantial structural and quantitative changes. This study provides a detailed examination of the evolution of bank assets and liabilities over the period 2007–2008, with particular emphasis on balance sheet dynamics, credit expansion, and funding sources.
The analysis reveals a strong growth in total assets, driven primarily by the rapid increase in lending activity, especially to corporate clients and households. At the same time, liabilities expanded mainly through deposits and external financing, reflecting increased confidence in the banking system. Despite the global financial crisis, key indicators such as capital adequacy, liquidity, and profitability remained at stable and relatively high levels.
Overall, the findings suggest that the Bulgarian banking system maintained resilience during the analyzed period, supported by adequate capitalization, prudent risk management, and sustained profitability.
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