Assessing the potential consequences of measures that may affect the banking sector, financial intermediation, lending conditions, and financial stability is part of the institutional functions and responsibilities of the Bulgarian National Bank (BNB). This was stated by the central bank in a clarification regarding public statements on the position of BNB Governor Dimitar Radev made on September 25. The press release was published on the BNB’s website after earlier on Monday, Minister of Finance Galab Donev told reporters that Radev was overstepping his authority with his stated position on the Government’s proposed tax on banks’ excess profits.
The BNB notes that this approach is in line with the established practice of the Eurosystem in assessing measures affecting the banking sector.
As explicitly stated in the September 25 position, decisions regarding tax and fiscal policy fall within the purview of the Government and the National Assembly, the press release states.
Providing a professional assessment of the potential implications of these decisions for the financial system and the economy does not constitute participation in the political process, the central bank underscores.
The BNB emphasizes that the independence of the central bank is a fundamental principle of the Eurosystem’s institutional framework. It requires the BNB and the members of its governing bodies to perform the functions entrusted to them and to formulate and present their professional assessments regardless of political positions.
The Bulgarian National Bank will not participate in political debates, the statement further notes. The BNB will continue to perform its functions and present its professional assessments in accordance with its statutory mandate and the institutional framework of the European System of Central Banks and the Eurosystem, the central bank adds.
In his statement last week, the BNB Governor warned that additional taxation on bank profits could lead to more expensive or less accessible credit, limit private investment, and increase the cost of government financing.
Assessment of Possible Consequences for Banking Sector Is Part of Central Bank’s Responsibilities, Bank Says THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-09-28 16:54:00
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