Banker weekly reports on the implementation of European banking directives in Bulgaria. Meeting European standards will be among the main tasks on which experts from the Bulgarian National Bank (BNB) will work.

Consolidation processes, which began in 2005, will continue in the coming year, decreasing the number of credit institutions serving the Bulgarian market, BNB deputy director Tsvetan Manchev said. Currently, 34 banks and branches of international institutions are registered in Bulgaria. Manchev said the competition between banks and the quality of services offered was likely to increase.

Among the main characteristics of the Bulgarian banking sector is that increasing numbers of local banks are relying on foreign loans. Banks remain stable, despite the fast credit expansion and the strict regulatory policies. Manchev said the most important changes in 2006 would be related to the new laws for credit institutions, for consumer credits and, attached to them, new BNB regulations. The currency board will continue functioning at the same level. The Bulgarian lev is fixed to the euro at the rate 1.95583 leva for one euro.