The banking system in Bulgaria is stable and there are no reasons for any worries, the Bulgarian National Bank deputy governor Rumen Simeonov said on Bulgarian National Radio.

The Bulgarian National Bank will not allow any rumors to cause panic and will use all instruments in its power to protect the banking system from insecurity, he also said.

Rumours have circulated for some time now that First Investment Bank is experiencing liquidity problems and faces bankruptcy. FIBank denied all rumors and said the capital flow in and out of the bank is normal.

FIBank also called for the involvement of the prosecutor's office and the financial intelligence in identifying the sources spreading the false allegation.

The Bulgarian banking system is stable and has no liquidity concerns whatsoever, Prime Minister Stanishev told journalists yesterday. “I have not received any worrying data from the Bulgarian National Bank about any bank in the country,” he added.

FIBank shares plunged yesterday morning on BSE but later on managed to recover to a certain extent and closed just 2.60% down at 6.73 leva apiece, at a turnover of 114,988 shares.

Bids on the position are currently almost three times as many as asks. The stock is traded at an average of 6.97 leva, which is a hike of 3.57%. Some 31,978 shares have changed hands so far this morning.