Obtaining a banking license is regulated by the Bulgarian legislation in several laws:
* Banking Act
* Bulgarian National Bank Act
* Regulation on licenses and permits issued by the Bulgarian National Bank
Bank as an entity characterized by the range of activities that can perform so-called absolute or bank transactions (public attraction of deposits and use the amounts collected to make loans and investments) that can be underwritten only by firms engaged banking business. Along with these transactions in banking and means: acceptance of valuables on deposit; perform operations cashless payment and clearing of check accounts of others, the issuance and administration of electronic payment instruments; provision of bank deposit boxes.
In addition to transactions forming exclusive banking, banks carry out other activities that do not need to obtain special permission and may be performed by non-banks.
There is a general prohibition to perform banking business as the sole authorization of grants to certain entities that have received it, make it the entering transactions.
For the implementation of banking business is an absolute prerequisite to liability company has been issued by the Central Bank (BNB) license. The need for this stems from the licensing situation of banks in society and the visibility of transactions concluded by them. By contacting a wide range of entities increases and their effect on bank cash commodity turnover. This requires the exercise of legal regulation of permissive nature of the state by introducing lizenzionen mode for carrying out banking business.
Licenses for banking activities are issued by the BNB Governor, proposed by the Deputy Governor “Banking Supervision”.
Local Entities Requirements:
License of a local bank to perform banking activities may apply only joint stock company which meets the conditions for carrying out banking activities in accordance with regulatory requirements at the time of receipt for a license:
* – not been entered into the commercial register (that is in the process of incorporation);
* – the amount of paid-in capital in the formation of a bank can not be less than 10 million BGN;
* – amounts paid for subscriptions to the minimum required capital can be cash only.
Requirements for Foreign Entities:
* – Wish to operate in the country through a branch;
* – Fulfill the conditions of art. 12 of the Banking Act;
* – At the time of issuance of the license have own funds of not less than the minimum required equity under Bulgarian law.
Requirements for members of the Board or the Board of Directors
- Have acquired a higher education degree is not lower than “master”;
- Have sufficient relevant education qualifications and professional experience in banking, as attested by a certificate;
- Persons representing the bank, except that you must have appropriate qualifications and experience necessary to have worked at least five years in a management position in a bank or comparable to a bank company or institution;
- Have not been convicted of an intentional criminal offense;
- Were not members of management or supervisory body or general partners in a company when it was terminated due to insolvency, if unsatisfied creditors;
- Have not been in the last five years preceding the date of the decision declaring the bank insolvent, members of its management or supervisory body;
- Are not deprived of the right to hold office;
- No spouses or relatives up to third degree including a straight or collateral line among themselves or another member of management or supervisory body of the bank.
Looking to know more? Feel free to send us your inquiry. We will be happy to help you to obtain your banking licensing.