Why is the ECB silent about the BDB?

The ECB is silent about the BDB. We have sent a request for all documents on the case.

As we have already written, Bulgaria has been a member of the Banking Union for 9 months now. A key element of the BS is the so-called Single Supervisory Mechanism. Supporters of the eurozone promised that the banking supervision in the hands of the ECB would correct the problems in the local one. “There will be no second Corpbank” – they claimed.

Given the numerous scandals revealed by the caretaker government, we sent a number of questions to the European Central Bank regarding the supervision it carries out of the Bulgarian Development Bank - what it is, who carries it out, with what priority. You can see the full text of our inquiry HERE.

More than a month has passed since our request was officially accepted by the ECB with a proper notification. We have not received a response to this day. Therefore, we continue with a formal request for access to information relating to documents on the BDB that the ECB has and works with.

It was also officially accepted and we were given a 20-day deadline to receive a response.

Here is our question.

To the Director of Directorate General Secretariat of the European Central Bank

Dear Ms. Senkovic,

In view of the right of access to EU documents as laid down in Article 15 of the TFEU, Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents and Decision No 2004/3 of the ECB, we hereby request access to the following ECB documents:

- All communication between the members of the Governing Council of the ECB and the Bulgarian National Bank (BNB) between 1 October 2020 and 18 June 2021 that concerns the prudential supervision of the Bulgarian Development Bank (BDB)

- All communication between the members of the ECB Supervisory Board and the BNB, which discusses the ECB's implementation of its supervisory oversight responsibilities over BDB as a less significant institution; the alignment of the BNB's supervisory actions, as a national competent authority, with BDB in the spirit of the highest supervisory standards and the compliance of BDB's credit policy and practice with prudential limits on size, concentration and interconnectedness, as well as with the bank's internal regulations

- All documents containing information on what the level of supervisory priority of the BDB for the ECB was at the start of close cooperation between Bulgaria and the ECB on October 1, 2020 and what it is currently

- Communication and documents that make it clear whether and what the assessment of DG Microprudential Supervision III or another department in the ECB of the supervisory procedures of the BNB between July 18, 2018 and October 1, 2020 and after October 1, 2020 has been carried out.

- Documents and communications reflecting discussions on whether the ECB finds grounds to decide to also assume direct supervision over BDB under Articles 67-69 of the SSM Framework Regulation.

Please acknowledge receipt of this application as required by Article 7(1) of Decision 2004/3.

With respect,

Stoyan Panchev

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