Bulgarian National Bank (BNB) data shows that Bulgaria’s five biggest lenders made up for 56.5 per cent of the banking sector’s total assets at the end of June 2007.

The concentration of assets is a result of the merger of UniCredit-owned Bulbank, HVB Bank Biochim and Hebros Bank, according to Bulgarian news agency BTA.

Total assets increased by two billion leva in June, and have increased by 11.2 billion leva, or 31.2 per cent, over the past 12 months.

Starting in September 2007, BNB will increase the minimum reserve requirements, meaning the deposits that commercial banks are required to keep with the central bank, from eight per cent to 12 per cent of their deposit base, with the aim of slowing credit growth to 35 or 40 per cent by the end of 2007, and further to about 30 per cent in the first quarter of 2008.

BNB said that the five largest lenders in terms of assets would make up the so-called First Group. Other banks will make up the Second Group category, and local branches of foreign banks will fall into the Third Group.