A Founding Member of IADI A Founding Member of EFDI
BDIF Profile Overview
BDIF is an independent public institution
As of end-December 2011 BDIF insures
Bank Deposit Guaranty (LBDG). The Fund
with 26 member institutions.
established in January 1999 under the Law on protects deposits of physical persons and legal entities with member banks and reimburses
depositors for the insured deposit amount in the event of a member bank failure.
Under the Law on Bank Bankruptcy (LBB) BDIF administers bank bankruptcy proceedings in
view of securing fair satisfaction of creditors and ensuring transparency of proceedings.
According to the Law on Credit Institutions the
BDIF may participate in the capital increase of a credit institution placed under special
supervision and in danger of becoming insolvent.
BGN 46.34 billion (EUR 23.69 billion) in deposits
The system is industry-funded by member
institutions paying entry and annual premium contributions to BDIF.
Banks’ entry premiums amount to one per cent of the bank’s registered capital.
Annual premiums paid by banks are 0.5% of the total amount of the previous year’s eligible
deposits determined on an average daily basis. Annual premiums are due by 31 March in the current year.
BDIF is a major safety net player contributing to
banking system by insuring depositors’ funds in
national and foreign currency are insured in full
the stability of and confidence in the Bulgarian
banks and protecting creditors’ interests in bank bankruptcy proceedings.
Deposit Insurance Membership
Membership in the system of banks, registered under Bulgarian legislation, is mandatory. Local branches of foreign banks from the
European Union and the European Economic
Area do not participate since they are insured by
Deposits of physical persons and legal entities in up to BGN 196,000 (EUR 100,100) per depositor per bank.
BDIF may invest its funds in government
securities, short-term deposits with banks and the Bulgarian National Bank (BNB).
As of end-December 2011 BDIF investment
portfolio equals BGN 1324.09 million (EUR 677.00
their home country scheme. They may join the
The target ratio of the Fund, stipulated by the
provided by their home country scheme.
banking system. In the event of shortfall of
system only to supplement the guarantee
Local branches of other foreign banks are
obliged to participate provided they are not
LBDG, is 5% of the eligible deposits in the
resources the BDIF may borrow from the market with a government guarantee.
protected by their home country scheme. In
Repayment of insured deposits
they have to participate in the Bulgarian system
currency. Disbursement is done via a bank
case of lower level and /or scope protection, to supplement their home country scheme guarantee.
Insured deposit amounts are repaid in national determined by BDIF Management Board and
begins within 20 business days from the date of
A Founding Member of IADI A Founding Member of EFDI
BNB revocation of a bank’s license. In wholly
exceptional circumstances this deadline may be extended by 10 business days.
BDIF has successfully performed its insurance function in the three bank failures since its
BDIF is a founding member of and an active
participant in the activity of the International
Association of Deposit Insurers and the European Forum of Deposit Insurers.
establishment ― Credit Bank (1999), Balkan
Trade and Development (2005).
consisting of five members who are designated,
Universal Bank (2000) and International Bank for
Under the Law on Bank Bankruptcy BDIF controls trustees’ exercise of power by appointing and removing them, determining their
remuneration, approving the plan for the
BDIF is governed by a Management Board,
as follows: the Chairman ― by the Council of Ministers; the Vice Chairman ― by BNB
Governing Council; one member ― by ABB; two
members ― jointly by BDIF Chairman and Vice Chairman.
liquidation of the bankruptcy estate’s property,
performing off- and on-site inspections and by
and Early Intervention, Risk Assessment and
controlling expenses and transactions,
issuing instructions on their performance.
Upon enactment of LBB, BDIF took control over four failed banks (1996-2000) and by August
BDIF main departments are: Bank Bankruptcy Analysis, Legal, Treasury, Finance and
Accounting, HR and Administration, Corporate
Communications and International Cooperation.
2005 BDIF successfully completed their
The International Bank for Trade and
safety net player the following priorities lie
Development was sold as a whole enterprise in July 2007.
The Fund is accountable to the Council of
Ministers, BNB and the National Audit Office by
Ensuing from its mandate and its role as a major before BDIF:
Alternative resolution methods Potential risks management
Maintaining depositors’ confidence.
presenting them its Annual Report. The National Audit Office audits BDIF activities.
Relationships BDIF has signed a Memorandum of Understanding with BNB and a Letter of Cooperation with the Association of Banks in Bulgaria (ABB).
BDIF maintains wide international contacts and receives and provides assistance on deposit
insurance issues through bilateral co-operation.
27 Vladaiska Street
1606 Sofia, Bulgaria
Tel.: +359 2 953 1217, 953 1318 Fax: +359 2 952 1100
E-mail: firstname.lastname@example.org Internet: www.dif.bg