Regulatory Alerts2016-12-16
Ordinance No 23 of the BNB on the Terms and Procedure for Payout of Covered Deposit Amounts
The Bulgarian National Bank issued Ordinance No 23 to establish the specific terms and procedures for the Bulgarian Deposit Insurance Fund to payout covered deposit amounts upon bank failure. The regulation mandates that appointed liquidators or conservators submit accurate depositor data to the BDIF, which then designates servicing banks to execute payouts after verifying documentation and coverage levels. It further outlines the coordination mechanisms for reimbursing depositors holding accounts in Bulgarian bank branches located in other EU member states through their respective host country guarantee schemes.
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