Credit Institutions Act Changes Pass on First Reading

Nelly Zheleva, Lyubomir Gigov

Bulgaria's National Assembly holding a regular plenary sitting, Sofia, June 19, 2026 (BTA Photo/Blagoy Kirilov)

Sofia,

19.06.2026 12:19

(BTA)

Bulgaria's Parliament on Friday passed on first reading Government-proposed revisions to the Credit Institutions Act.

Deputy Finance Minister Lyudmila Petkova explained that the draft legislation transposes two EU directives, providing for sanctions that may be imposed on a bank or a financial holding company for coercive enforcement upon default on financial liabilities.

The amendments supplement the requirements for independence of the employees and members of the Governing Council of the Bulgarian National Bank (BNB) and the 'fit-and-proper' framework for assessments of management body members and key function holders at banks. Under Directive (EU) 2024/1619 of the European Parliament and of the Council of 31 May 2024 amending Directive 2013/36/EU, no member of a competent authority's governance body who is appointed after January 11, 2026 remains in office for more than 14 years.

Part of the revisions concern supervisory powers, sanctions, third-country branches, and environmental, social and governance risks.

Other provisions supplement the independence and transparency framework for the employees and members of the BNB Governing Council in its capacity as banking supervision authority.

The bill envisages harmonization of the requirements for notification and supervisory powers regarding prudentially material transactions carried out by banks and upgrading the national arrangements for licensing and operation of third-country bank branches, including the BNB's supervisory powers to ensure compliance with applicable prudential requirements.

Vis-à-vis Bulgaria's eurozone entry, the amending act proposes revisions to the Bank Bankruptcy Act and the Bank Deposits Insurance Act regarding the allocation of powers of the European Central Bank and the BNB in connection with the prudential supervision they exercise.

/DD/