The total assets of the Bulgarian banking system amounted to BGN 69.6 billion as December 31, 2008, data of the Bulgarian National Bank (BNB) showed. The assets grew by 0.3% in the fourth quarter and by 17.7% compared to December 2007.

Loans register the lowest annual growth rate for the last few years, and the low pace of growth in the last quarter of 2008 brings the increase to 31.2% in the corporate segment and 33.8% for retail exposures.

The total value of the attracted funds rose by 16.6% in a year. Deposits of individuals and households went up up at a similar growth rate of 16.8%.

The capital position is stable. The total capital adequacy ratio of the system amounted to 14.86% (with 13.83% a year earlier) which generates a considerable capital surplus proportionally distributed among credit institutions. The adequacy of tier-one capital stood at 11.16%.

At this level the credit institutions have various possibilities of using the tier-two capital instruments to generate, when necessary, additional reserves. The capital position stays unaffected by the market assessments due to the lack of investment in structural products and other ‘toxic' assets which are subject to a negative market revaluation.

The profitability of the banking system, in terms of quality and sources, keeps its profile of recent years. The profits amount to BGN 1,387 million as at December 31, 2008 (the highest level in the last ten years). The figure grew by BGN 243 million (21.3%) compared to December 2007.

The liquidity of the banking system remains good in the end of 2008. The liquid assets ratio stood at 21.71%, and the share of cash in total assets amounted to 9.7%.