Like elsewhere in the world, the financial crisis has hit banks greatly but this is partly down to their own making. The question everyone is asking is "What is happening to the banking sector?"
The results from the Bulgarian National Bank on figures of profit has shown that the banking sectors net profits are now less than 50% of what they were back in 2008.
The year of 2008 showed that between January and November the banks of Bulgaria had a combined net earning of 1.4 billion Leva, but for the same time this year (2010) the figure stands at only 584 million Leva.
Although the huge drop in earnings may look concerning the banking system in Bulgaria still remains in credit so there are no issues according to the Bulgarian National Bank.
The reasons for this drop in earnings are mainly down to lower lending since the financial crisis and that costs have increased because of the higher number of loans that cannot be repaid due to consumers experiencing financial difficulty.
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