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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

 Funding

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

 Coverage

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.

 Investment

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

million).

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

Management

Trade and Development (2005).

consisting of five members who are designated,

Universal Bank (2000) and International Bank for

Bank Bankruptcy

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,

Organisational structure

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

Challenges

The International Bank for Trade and

safety net player the following priorities lie

bankruptcy proceedings.

Development was sold as a whole enterprise in July 2007.

Accountability

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:

 European issues

 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.

Contact info

27 Vladaiska Street

1606 Sofia, Bulgaria

Tel.: +359 2 953 1217, 953 1318 Fax: +359 2 952 1100

E-mail: contact@dif.bg Internet: www.dif.bg


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