Ordinance No 41 of the BNB on Determining Individual Annual Contributions by Branches of Third-country Credit Institutions to the Banks Resolution Fund

Ordinance No 41 of the BNB 1
Ordinance No 41* of the BNB of 25 February 2021 on Determining the Amount of Individual Annual Contributions by Branches of Third-country Credit Institutions to the Banks Resolution Fund (Published in the Darjaven Vestnik, issue 23 of 19 March 2021; amended; Darjaven Vestnik, issue 17 of 28 February 2025)
Chapter One
General Provisions
Article 1. This Ordinance shall establish the terms and procedure for determining
the amount of individual annual contributions to the Banks Resolution Fund (BRF) due by branches of third-country credit institutions licensed in the Republic of Bul￾garia to operate through a branch.
Article 2. (1) The contributions under Article 1 shall be set annually by the Bulgar￾ian National Bank (BNB) in its capacity as a resolution authority under Article 2 of
the Law on the Recovery and Resolution of Credit Institutions and Investment Firms (LRRCIIF) in the form of fixed lump sums. (2) An individual annual contribution shall be set for each branch of a third￾country credit institution by taking into account the amount of covered deposits in branches of third-country credit institutions and available financial resources in the sub-fund under Article 134, paragraph 1, item 1 of the LRRCIIF. (3) In determining the contributions under Article 1, data as of 31 December of the previous year shall be used.
Article 3. (amended; Darjaven Vestnik, issue 17 of 2025) The amount of indi￾vidual annual contributions under Article 1 shall be determined by a decision of the
BNB Governing Council upon a proposal by the Deputy Governor heading the Bank￾ing Department no later than 30 April of the current year.
Article 4. The contributions paid by branches of third-country credit institutions
to the BRF shall be raised in the sub-fund under Article 134, paragraph 1, item 1 of the LRRCIIF.

• Unofficial translation provided for information purposes only. The Bulgarian National Bank bears no
  responsibility whatsoever as to the accuracy of the translation and is not bound by its contents.

2 Ordinance No 41 of the BNB
Chapter Two
Information for the Purposes of Determining the Amount of Individual Annual Contributions
Article 5. (1) In calculating the contributions under Article 1, the BNB shall use
the information on the amount of covered deposits of branches of third-country credit institutions, as provided by the Bulgarian Deposit Insurance Fund (BDIF). (2) Each year, upon a request by the BNB, the BDIF shall submit by 31 December of the reference year the most recent information on the amount of covered deposits of each of the branches under paragraph 1.
Article 6. In relation to determination and collection of the contributions under
Article 1, the BNB may use information submitted for supervisory purposes by third￾country credit institutions and their branches in the Republic of Bulgaria.
Chapter Three
Calculation of Individual Annual Contributions
Article 7. The total amount of annual contributions under Article 1 shall be calcu￾lated by reducing the sum equal to 1 per cent of total covered deposits of branches of
third-country credit institutions by the amount of the financial resources available in the sub-fund under Article 134, paragraph 1, item 1 of the LRRCIIF.
Article 8. The individual amount of the annual contribution under Article 1 for
each branch of a third-country credit institution shall be calculated by apportioning the total amount of contributions under Article 7 between the branches in proportion to the respective shares of their covered deposits in total covered deposits of branches of third-country credit institutions as of 31 December of the reference year.
Article 9. (1) If the total amount of annual contributions set under the procedure
of Article 7 is a negative value, no individual contributions of branches of third-coun￾try credit institutions shall be determined and collected. (2) Determination and payment of contributions under Article 1 shall be resumed when the result of the annual determination of the total amount of contributions un￾der Article 7 is a positive value.
Article 10. (1) In the event that as of 31 December of the reference year the resourc￾es available in the sub-fund under Article 134, paragraph 1, item 1 of the LRRCIIF
have decreased by more than 30 per cent from the previous year, the BNB Governing Council may determine individual contributions under Article 1 to an amount less than the amount calculated under the procedure of Article 8. (2) In taking the decision under paragraph 1, the BNB Governing Council shall assess whether the payment of individual annual contributions may threaten the liq￾uid positions of branches of third-country credit institutions and whether thus deter￾mined individual annual contributions exceed the net profit of the relevant branch of a third-country credit institution as of 31 December of the reference year.

Ordinance No 41 of the BNB 3
(3) The decrease of the contributions under paragraph 1 shall be set so that the total amount of annual contributions under Article 7 be achieved for a period not longer than six years.
Chapter Four
Collection of Individual Annual Contributions
Article 11. (1) (amended; Darjaven Vestnik, issue 17 of 2025) By 1 May of the
current year, the Deputy Governor heading the Banking Department shall notify each branch of a third-country credit institution of the amount of an individual annual contribution to be paid into the BRF. (2) Branches of third-country credit institutions shall pay individually their annual contributions on the account of the sub-fund under Article 134, paragraph 1, item 1 of the LRRCIIF within 30 days from the date of the notification under paragraph 1.
Article 12. (1) In case of non-compliance with the obligation to pay a contribution
under Article 1, an interest shall be charged on the due amount for the period of delay to the amount of the statutory interest rate. (2) The branch of a third-country credit institution shall be notified of the amount of the interest due under the procedure of Article 11, paragraph 1.
Chapter Five
New Third-Country Branches and Changes in the Status
Article 13. The first individual annual contribution of a newly established branch
of a third-country credit institution shall be determined in the year following the year in which this branch started to operate the permitted business subject to a BNB licence.
Article 14. In the event of a change in the status of a branch of a third-country
credit institution, including liquidation and conversion, no re-calculation or exemp￾tion from the obligation to pay a contribution under Article 1 for the year in which the change occurs shall be made. Additional Provision § 1. Within the meaning of this Ordinance:

1. ‘covered deposits’ shall be a concept within the meaning of § 1, item 5 of the Law
   on the Recovery and Resolution of Credit Institutions and Investment Firms.
2. ‘branch’ shall be a concept within the meaning of Article 4(1)(17) of Regulation
   (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012.
3. ‘reference year’ shall be the year provided for under Article 2, paragraph 3.
4. ‘available financial resources’ shall be the resources of the sub-fund under Ar￾ticle 134, paragraph 1, item 1 of the LRRCIIF, which include annual contributions of
   third-country credit institutions; income from investment of funds of the sub-fund

4 Ordinance No 41 of the BNB under Article 134, paragraph 1, item 1 of the LRRCIIF; reimbursement of amounts used for resolution purposes under the terms set for application of relevant resolution tools and related income and compensation; without reductions by the funds granted as loans under Article 142, paragraph 2 of the LRRCIIF. Transitional and Final Provisions § 2. The resources allocated in the sub-fund under Article 134, paragraph 1, item 1 of the Law on the Recovery and Resolution of Credit Institutions and Investment Firms as of the date of entry into force of this Ordinance shall be included in the amount of available financial resources under Article 7. § 3. This Ordinance is issued on the grounds of Article 139, paragraph 6 of the Law on the Recovery and Resolution of Credit Institutions and Investment Firms and adopted by Resolution No 45 of the BNB Governing Council of 25 February 2021. § 4. This Ordinance shall enter into force on the date of its publication in the Dar￾javen Vestnik. Ordinance on Amendment to Ordinance No 41 of 25 February 2021 on Determining the Amount of the Individual Annual Contributions of Branches of Third-country Credit Institutions to the Banks Resolution Fund (published in the Darjaven Vestnik, issue 17 of 2025) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final Provision § 2. This Ordinance is issued on the grounds of Article 139, paragraph 6 of the Law on the Recovery and Resolution of Credit Institutions and Investment Firms and adopted by Resolution No 50 of 7 February 2025 of the Governing Council of the Bul￾garian National Bank.