Krassimira Kostadonova Naydenova
Evaluation of the Effects of Certain Regulatory Decisions for the Financial Market In Bulgaria
Summary:
The capital market in Bulgaria is not a working one and is not useful for the national economy. Despite the regulatory framework that meets the highest global standards, companies are unable to gather new capital and investors do not have access to quality Bulgarian financial assets. Securitization is presented only through the isolated segment of real estate investment trusts. The banking market is wide but concentrated in ownership and far from modern banking, and full integration with the European financial market remains unclear.
These weaknesses are result of ineffective government intervention, constitute a regulatory failure and have consequences - a capital market that fails to generate adequate investment opportunities for Bulgarian capital and to finance high value-added projects, bank concentration with all the negatives on depositors, borrowers and investors, unfulfilled financial integration with effects on the entire national financial system and ultimately, the colossal loss of national income.
