On Tuesday BNB Governor Ivan Iskrov announced in a letter to the President of the National Assembly he was ready to resign if parliament decided the selection of a new governor to take place before the government dissolution on August 6. The main reason is said to be disagreement with intentions to use the bank and its governor for political purposes by systematic and unacceptable accusations related to the case with bankrupt Corporate Commercial Bank.

Iskrov said that under the Law on the BNB, after resignation of the governor is deposited, his powers are terminated after three months, whether or not there is a will to elect a new governor. "Failure to choose a governor would be the fastest way for bringing chaos in the work of this very important institution for the financial stability of the country," he added. Keeping in mind the fact that early parliamentary elections will be held on October 5, the choice of a new governor of the Bank will be a difficult one and that is why Iskrov has not given his resignation yet.

This letter gives us an occasion to recall the decision taken by the main political forces in urgent consultations with the president, to include Bulgaria in the Single Supervisory Mechanism of the EU. "Bulgaria is definitely interested in participating in the unified European banking supervision mechanism," said in an interview for Radio Bulgaria former MEP Ivaylo Kalfin.

"First we need to clarify that this decision is not a new one. About two years ago, the question which countries should take part in the Single Supervisory Mechanism arose. Then after much hesitation Bulgaria said it intends to participate in it. It is surprising that so far nothing has been done in this direction. The EU Banking Union will start work next year. It will initially include the largest banks in Europe that are about 300, but there are no Bulgarian banks among them. Gradually, the system will evolve and go through supervision of the central banks. This way the information and risk methodology for banking supervision will become much more organized. However, another institution in Europe was established - the European Banking Authority, which exchanges information on the methodology for banking supervision. Bulgaria participates in this authority and should be more active in seeking their assistance.”

The European Central Bank /ECB/ will also have the function to monitor directly EU-wide banks. The largest banks in the euro area need to join. Optionally countries outside the euro area, including Bulgaria could also join the supervision. EU countries outside the euro area as Bulgaria could also join the supervision. Could this blur the responsibility?

"This will not lead to blurring responsibility, moreover that the ECB will not replace fully the national banking supervision,” Ivaylo Kalfin says. “The Bulgarian National Bank will keep some of its supervisory functions. Supervision of our central bank will function within the framework of European banking supervision. Responsibility will not be transferred only on the ECB. The Bulgarian National Bank will continue to be responsible the way it is now responsible for omissions after seeing the problems with CCB."

"If this country joined the European banking supervision, initially Bulgarian banks may chose not to be part of it Ivaylo Kalfin goes on to say.

"As I said the ECB is concerned only with the largest banks in Europe, which could create a systematic risk, he said. Bulgarian banks are not among them. It's about a risk for the entire European market, not for individual member states. Procedures provide that a bank can be voluntarily included in the system of supervision and it would be in the interest of Bulgarian banks. I think time must pass before confidence in the functioning of banking supervision in Bulgaria returns. A bank that wants to demonstrate to partners and customers that is stable would like to have the certificate of the ECB," Ivaylo Kalfin concludes.

English: Alexander Markov