Macroeconomic Monitor

2014.07.16

The problem with deposit protection

The case of the bankrupt Corporate Commercial Bank (CCB) and the banking panic that hit First Investment Bank give us reason to return to some of the basic problems of the modern form of banking[1]. And especially after the announcement of the idea of paying out all deposits (even amounts exceeding 100,000 euros) in CCB, not …

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How did the BNB arrive at the magic number of BGN 3.7 billion?

The BNB's ambitious plan to save the banking system actually raised more questions than answers, and the end result was more confusion than relief. To top it all off, on July 14, the media reported the magic number of BGN 3.7 billion – the amount that would be needed to implement …

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