The bank rescue "Corp-Bank" could plunge the Bulgarian government in a debt of around 1 billion euros in financial markets. Experts believe that such cases will be in the future. Problems of this nature can not be avoided and, when a country like Bulgaria, the poorest country of the European Union, borrows such size, the effect on the local economy would be huge.
In some cases, just enough rumors that a bank has no liquidity, that it enters into crisis. People flocking to withdraw their savings and could really happen, the bank thus faces the risk of bankruptcy.
On the other hand, there is the risk that financial institutions infect each other. When a bank has, loses the trust of others. Difficulties, banks may dip even lending to each other.
Due to the current situation, the Bulgarian government has decided to join the banking union. With this, the finance ministers of the EU want to find a pattern, how to assist banks in crisis. The main question is who will be responsible for the payment, in order to not be the taxpayer, who pays first.
Mechanism that is establishing a fund provided banking union, in which all banks should make a contribution, a total of 55 billion euros. Before you put into practice the banking union, 128 largest European banks will be subject to a proof test, to see their balance sheets.
According to experts, in this way to ensure that the financial problems of the past and balances weaknesses are resolved before they start work in November institution of Banking Supervision of the EU.
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