In November the banking system retained its financial stability with improved liquidity position, good earnings and increased attracted funds and balance sheet assets. The liquid assets to total liabilities ratio reached 22.71% (21.7% as of end-October). All banks comply with the recommended by the BNB level of coverage with liquid assets of the attracted funds from individuals and institutions other that credit ones. A further slowdown in the rate of growth of classified loans was observed in November. Impairment costs are fully covered by operating income. At the same time, the profit of the banking system increased by BGN 67 million to BGN 584 million.

The total amount of assets in the system increased by 1.3% to BGN 72.6 billion as a result of the growth in attracted funds and capital. An increase in cash and in securities in trading portfolios, those available for sale and held to maturity, as well as in loans and advances was registered during the month. No change occurred in the resident structure of the portfolios of debt instruments. More than ¾ of these are of domestic issuers - mostly Bulgarian government securities. Gross loans (excluding those to credit institutions) increased by 0.4% (BGN 203 million). Over the month, corporate loans went up by 0.4% (BGN 116 million), and retail exposures - by 0.3% (BGN 53 million). Housing mortgage loans recorded a 0.7% growth unlike the consumer segment, which once again reported a 0.1% decrease. Over the reviewed period, the five largest credit institutions were more active in mortgage lending, while small and medium banks - in corporate lending.

Attracted funds grew by 1.6% (BGN 954 million) to BGN 62 billion. The resource from institutions other than credit ones contributed significantly with a 2.1% growth over the month. Deposits from individuals and households marked a 1.5% increase (BGN 403 million) reaching 44.1% of total attracted funds in the system (40.3% as at 30.11.2009). Due to the sustained upward trend of deposits by the public, the share of the resource by residents in the structure of attracted funds went up by 7 percentage points to 76.5% for the last 12 months.

The balance sheet capital increased by 0.8% reaching BGN 9.8 billion in end-November. During the month, current year income saw an increase, supplemented by the growth in issued capital (BGN 9.6 million).