Regulatory Alerts2018-07-16
Ordinance No 37 of the BNB of 16 July 2018 on the Internal Exposures of Banks
The Bulgarian National Bank (BNB) issued Ordinance No 37 of 16 July 2018, amended in 2026, to regulate how banks establish, identify, monitor, and report internal exposures to connected parties under the Credit Institutions Act. The regulation requires unanimous board approval for such exposures, mandates calculation based on gross book and nominal values without collateral deductions, and obliges banks to implement documented internal processes, registers, and annual internal audits. It further stipulates quarterly reporting formats, a 10-day notification window for new exposures or limit breaches, and a formal BNB approval process for exempting subsidiary exposures from consolidation limits.
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