Law Amending And Supplementing The Law On Credit Institutions

Original Language Title: Закон за изменение и допълнение на Закона за кредитните институции

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Name of law Law amending and supplementing the law on credit institutions Named Bill a bill amending and supplementing the law on credit institutions adopting the Date 11/03/2014 number/year Official Gazette 27/2014 Decree No 51

On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the Official Gazette the law amending and supplementing the law on credit institutions HLIÌ adopted by the National Assembly on 11 March 2014.

Issued in Sofia on 20 March 2014.

The President of the Republic: Rosen Plevneliev

Stamped with the State seal.

Minister of Justice: Zinaida Zlatanova

LAW

amending and supplementing the law on credit institutions (official SG. 59 06; amend., 105/2006, no. 52, 59 and 109 from the 2007 No. 69 since 2008, no. 23, 24, 44, 93 and 95 of 2009, 94 and 101 of 2010 and 77/105 from 2011, and 38/44 by 2012. , PC. 52, 70 and 109 from 2013 and St. 22 by 2014)

§ 1. In art. 1 make the following amendments and additions:

1. Paragraph 1 shall be amended as follows:

(1) this Act regulates the conditions and procedures for licensing, implementation of activities, supervision of compliance with prudential requirements and winding-up of credit institutions (banks) in order to ensure a stable, reliable and secure banking system and protecting the interests of depositors, as well as the requirements for the disclosure of information by the Bulgarian National Bank (BNB) in the field of prudential regulation and supervision of banks. "

2. a new paragraph. 2:

"(2) the Bulgarian National Bank is a competent authority in the Republic of Bulgaria for the exercise of supervision over the banks within the meaning of art. 4, paragraph 1, item 40 of Regulation (EC) no 575/13 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (OJ L 176/1 of 27 June 2013), hereinafter referred to as "Commission Regulation (EC) no 575/2013". "

§ 2. In art. 2, al. 2 is hereby amended as follows:

1. Points 8 and 9 are amended:

"8. trading for own account or for account of customers in foreign currency and precious metals with the exception of derivative financial instruments on foreign currency and precious metals;

9. provision of the services and/or carrying out activities under art. 5, al. 2 and 3 of the law on markets in financial instruments directive; ".

2. Point 11 is repealed.

3. In paragraph 17, the words "the Bulgarian National Bank (BNB)" are replaced by "BNB".

§ 3. In art. 3 make the following amendments and additions:

1. In paragraph 8. 1 in the text before paragraph 1, after the words "credit institution" shall be added "and" investment firm.

2. paragraph 2 is replaced by the following:

"(2) a financial institution is a financial holding company, a mixed financial holding company, a payment institution and management company. It is not a financial institution insurance holding company and mixed-activity insurance holding company. "

§ 4. In art. 3 and make the following changes and additions:

1. Paragraph 1 shall be amended as follows:

"(1) to carry out the activities under art. 2, al. 2, item 6, 7 and 12 and under art. 3, al. 1, 2 and 3 by occupation by a person who is not subject to licensing under other law, it is necessary to be entered in a public register of BNB, if one or more of these activities is essential for the person. The criteria for determining the significant activity shall be determined by an Ordinance of the BNB.

2. a new paragraph. 2:

"(2) in order to be entered in the register referred to in paragraph 1. 1, the person must meet the following requirements:

1. to have a commercial registration in Republic of Bulgaria as a limited liability company, joint stock company or limited partnership with shares;

2. in the subject matter of his activity to no activities beyond those of art. 3;

3. to have equity with structure and in an amount determined by the Ordinance under para. 1, as the shares may only be registered;

4. the place of performance of the main business is in the territory of the Republic of Bulgaria;

5. managing and representing the company to have the necessary qualifications, professional experience and reputation, a persons who hold, directly or indirectly, a qualifying holding in the capital of the company – reliability, financial stability and reputation. "

3. The current paragraph. 2 it al. 3 and in her words "art. 24, para. 2 "are replaced by" article. 24, para. 1 ", then a comma and added," If you're going to carry out one or more of the activities referred to in para. 1. "

4. The current paragraph. 3 it al. 4 and in her words "under art. 3, al. 2 "shall be deleted and the words" para. 1.1 ' shall be replaced by "para. 1. "

5. The current paragraph. 4 it al. 5 and in her words "a domestic or foreign financial institution, if ' shall be replaced by" If the applicant ".

6. The current paragraph. 5 it al. 6 and in it:

and in the text) before item 1, the words "domestic or foreign financial institution in respect of its ' shall be replaced by ' registered person in his";

b) in paragraph 1 the word "stop" is replaced by "ceased".

7. The current paragraph. 6 it al. 7 and in her words "financial institution" shall be replaced by ' registered persons "and the words" para. 1.1 ' shall be replaced by "para. 1. "

8. The current paragraph. 7 it al. 8 and in her words "para. 1.1 ' shall be replaced by "para. 1 ", the words" financial institutions "shall be replaced by" persons "and the words" art. 3, al. 1 "shall be replaced by" para. 1. "

§ 5. In art. 4 make the following amendments and additions:

1. The current text becomes paragraph 1 and item 2 is repealed.

2. a para. 2:

"(2) the provisions of this law shall not apply to postal operators concerning the activity of the postal money transfers, except for cases under art. 24-27 and for the inclusion in the scope of supervision on a consolidated basis, in which cases shall be treated as financial institutions. "


§ 6. In art. 5 make the following amendments and additions:

1. In paragraph 1, after the words "Member States", the text is deleted the rest.

2. In paragraph 2, after the word "law" is added "or by the law of the European Union.

§ 7. In art. 10 create al. 4, 5 and 6:

"(4) in the composition of the Governing Council (Board of Directors) and the Supervisory Board shall include individuals with diverse backgrounds and professional experience relevant to the specifics of the activities of the Bank activities and the main risks to which it is or might be exposed.

(5) in the composition of the Governing Council (Board of Directors) and of the Supervisory Board may engage persons who are in the composition of the management or supervisory bodies of other legal persons if it allows them to perform effectively his duties at the Bank.

(6) the conditions under which members of the Governing Council (Board of Directors) and of the Supervisory Board may participate in the composition of the management or supervisory bodies of other entities, as well as additional requirements to be respected in the exercise of their functions, shall be determined by an Ordinance of the BNB.

§ 8. In art. 11, para. 2, after the word "has" added "knowledge, skills, experience, and a comma and the words" necessary for taking up his duties ' shall be replaced by ' in accordance with the criteria laid down by the Decree of the NATIONAL BANK ".

§ 9. In art. 13, para. 2, t. 7, after the word "voice" and "be added to the 20 largest shareholders" and a comma.

§ 10. In art. 14, para. 3 p. 12 is replaced by the following:

"12. the persons saved 10 and more than 10 percent of the capital, meet the requirements for the acquisition of a qualifying shareholding or higher in accordance with this Act and at the discretion of the BANK the amount of the holdings of these assets and activities developed by them in its scale and financial results correspond to the requested to acquire shareholding in the Bank and did not cast doubt on the reliability and suitability of these persons, if necessary, to provide capital support of the Bank;".

§ 11. In art. 15 the following modifications are made:

1. In paragraph 8. 2 the words "pursuant to art. 39, para. 2 ' shall be deleted.

2. in the Al. 7, the words "and the Commission" shall be deleted.

§ 12. In art. 21 establishes al. 3:

(3) within one month of receipt of the notification of change in circumstances in which the Bank operates on the territory of the Republic of Bulgaria, the BULGARIAN NATIONAL BANK may indicate conditions under para. 1 in view of the change. "

§ 13. In art. 23 is made the following changes and additions:

1. In paragraph 8. 2. t 6 is repealed.

2. a new paragraph. 3:

"(3) the Bulgarian National Bank may request additional information when the information provided by the Bank is incomplete or contradictory."

3. The current paragraph. 3 it al. 4 and, after the words "the amount of own funds of the Bank and for its capital adequacy ratio ' shall be replaced by" the size and structure of the Bank's own funds and capital adequacy ratios according to art. 92 of Regulation (EC) no 575/2013 ".

4. The current paragraph. 4 it al. 5 and in her words "para. 3 "shall be replaced by" para. 4. "

5. The current paragraph. 5 it al. 6 and in her words "para. 4 "shall be replaced by" para. 5 "and the words" para. 2 "are replaced by" para. 2 and 3 ".

6. The current paragraph. 6 it al. 7 and in her words "para. 4 "shall be replaced by" para. 5. "

7. The current paragraph. 7 it al. 8 and in her words "para. 4 "shall be replaced by" para. 5. "

8. The current paragraph. 8 it al. 9 and in her words "para. 2, item 2 – 6 "shall be replaced by" para. 2, item 2 – 5 "and the second sentence:" paragraphs 3 to 7 shall apply accordingly. "

9. The current paragraph. 9 it al. 10.

10. The current paragraph. 10 it al. 11 and in her words "para. 9 "shall be replaced by" para. 10. "

§ 14. Article 24 is amended as follows:

"Art. 24. (1) a financial institution with its head office in a Member State may carry on business in the territory of the Republic of Bulgaria through a branch or directly after the BANK receives notification from the competent authority of the home Member State, together with an issued certificate for compliance with the conditions in accordance with relevant national legislation.

(2) if the BANK receives information from the competent authorities of the sending State that the financial institution has ceased to meet one of the conditions of the national legislation referred to in paragraph 1. 1, this financial institution loses the rights under paragraph 1. 1 and its activity is regulated entirely according to the requirements of the Bulgarian legislation.

(3) the provisions of this article shall not apply to financial institutions which, under other law have the right to operate through a branch or directly in the Republic of Bulgaria. "

§ 15. In art. 25, para. 1 make the following amendments and additions:

1. point 2 shall be replaced by the following:

"2. the Bank or banks that have joint financial institution received the license for carrying out banking activities issued by BNB;".

2. Set up item 3, 4, 5 and 6:

"3. the financial institution actually carries out one or more of the activities referred to in art. 3, al. 1 on the territory of the Republic of Bulgaria;

4. the Bank or banks that have joint financial institution, holding at least 90 percent of the votes in the General Assembly of the financial institution;

5. the Bank or banks that have joint financial institution, at the discretion of the BANK satisfies the prudent management of the financial institution and have declared, with the consent of the Bulgarian National Bank, that individually and jointly and severally guarantee the commitments entered into by the financial institution;


6. the financial institution and the activities that will be carried out, are effectively covered by the supervision on a consolidated basis over the Bank or over any of the banks that own the joint financial institution, carried out in accordance with the requirements of this Act and of the Regulation (EC) no 575/2013. "

§ 16. In art. 26, al. 2 creates a second sentence: "the date of notification Of the activities of the financial institution in the host Member State is regulated by its law."

§ 17. In art. 27 Finally, the comma and added "as well as for holdings with mixed activity".

§ 18. In art. 28 the following modifications are made:

1. In paragraph 8. (3) in the second sentence the words "art. 103, para. 2, item 15 "are replaced by" article. 103, para. 2, item 17.

2. in the Al. 5, paragraph 2, the words "company" shall be replaced by "parent".

§ 19. In art. 28 a, para. 3 make the following amendments and additions:

1. In the text before point 1 in the second sentence the words "each of" shall be deleted.

2. point 2 shall be replaced by the following:

"2. the reputation, knowledge, skills and experience of the members of the Governing Council (Board of Directors), of the Supervisory Board, as well as the senior management staff who will direct the business of the Bank as a result of the implementation of the stated acquisition;".

3. In paragraph 4, after the word "system" is added "including regulation (EC) no 575/2013" and a comma.

§ 20. In art. 31, para. 4, the words "article. 103, para. 2, item 15 "are replaced by" article. 103, para. 2, item 17.

§ 21. In art. 32, para. 3 the words "art. 103, para. 2, item 15 "are replaced by" article. 103, para. 2, item 17.

§ 22. In art. 36 following amendments and supplements shall be made:

1. In paragraph 8. 1:

a) in paragraph 3, after the words "information" insert "or other unlawful means used e", and the words "as the grounds ' shall be deleted;

b) point 6 is replaced by the following:

"6. the Bank does not comply with the prudential requirements provided for in third, fourth and sixth of Regulation (EC) no 575/2013, or those imposed by art. 103, para. 2, item 5 or art. 103 a, or could not believe that it will continue to perform its obligations to creditors, including where does not ensure the security of the assets entrusted to depositors. "

2. in the Al. 4, the words "supervisory requirements and rules laid down by the Ordinance under art. 40, para. 1 "shall be replaced by ' Regulation (EC) no 575/2013".

§ 23. In art. 37 following amendments and supplements shall be made:

1. In paragraph 8. 4, the words "and the Commission" shall be deleted.

2. in the Al. 5 after the word "branch" is added "or provides direct services" and the words "the competent supervisory authority of the State concerned" shall be replaced by "the competent supervisory authorities of the countries concerned".

§ 24. Article 39 shall be replaced by the following:

"Art. 39. (1) in order to ensure the fulfilment of obligations to creditors banks should have adequate underwriting risks from their own funds.

(2) the banks maintain capital buffers at any time. Types of buffers, the methods for their formation and updating shall be determined by an Ordinance of the BNB.

(3) the Ordinance referred to in para. 2 shall:

1. restrictions on payment of dividends or interest in any form in connection with equity;

2. the conditions for compulsory cover losses from shareholders and holders of equity instruments of the Bank before the covering of losses through the use of other sources;

3. other restrictions that banks followed when non-compliance detected or to prevent non-compliance with the requirements on capital buffers. "

§ 25. Article 40 shall be replaced by the following:

"Art. 40. with respect to contracts for the acquisition of the Bank amounts to be included as elements in its own funds shall not apply the provisions of the law on obligations and contracts and the law of Bank bankruptcy, which in comparison with those under contract to attract provide more favourable treatment as regards the rights of creditors. "

§ 26. In art. 41, para. 1, after the words "Reserve Fund shall be placed and end point text is deleted.

§ 27. Article 43 is repealed.

§ 28. Article 44 is amended as follows:

"Art. 44. The solution, which leads to the formation of large exposure within the meaning of art. 392 of Regulation (EC) no 575/2013, shall be taken by the Governing Council (Board of Directors). When the exposure exceeds 15 percent of the equity, the decision shall be taken by consensus. "

§ 29. In art. 45 para. 7 is repealed.

§ 30. Article 47 shall be repealed.

§ 31. In art. 56 the following modifications are made:

1. Paragraph 1 shall be amended as follows:

(1) the Bulgarian National Bank shall establish and maintain an information system for the financial obligations of the clients to:

1. banks under art. 2, al. 5;

2. the registered persons under art. 3 and carrying out activities under art. 2, al. 2, t. 6, 7 or 12, or under art. 3, al. 1, paragraph 3, with the exception of the foreign financial institutions which carry out activities directly on the territory of the Republic of Bulgaria;

3. payment institutions and electronic money granting loans by the procedure of art. 19 of the law on payment services and payment systems. "

2. paragraph 2 is replaced by the following:

"(2) the persons referred to in para. 1 are required to provide and shall have the right to receive information from the system. "

§ 32. In art. 64 following amendments and supplements shall be made:

1. In paragraph 8. 1:

a) in paragraph 3, after the word "banks" a comma and add "of the investor compensation fund";

b) point 5 is replaced by the following:

"5. the Auditors of the financial statements of credit institutions, investment firms, insurance companies or financial institutions, as well as of persons who, by law, supervise the Auditors of credit institutions, investment firms, insurance companies or financial institutions;"

in point 6), the words "financial institutions, insurers ' shall be replaced by ' enterprises in the financial sector";


d) in point 8, the words ' the accounts of banks and other ' shall be replaced by ' the accounts of credit institutions, investment firms, insurance companies and the "and the words" the Auditors of banks "are replaced by" the Auditors of credit institutions, investment firms, insurance companies and financial institutions ";

e) in item 9, after the word "deposit" is added "or compensation";

create new) item 10 and 11:

"10. the authorities of the other Member States the task of maintaining the stability of the financial system through the use of makroprudencialni rules;

11. the authorities of the other Member States for rescuing or bodies entrusted with the protection of the stability of the financial system; "

g) 12 shall be inserted:

"12. the institutional protection schemes referred to in article 113, paragraph 7 of Regulation (EC) no 575/13, and of the bodies responsible for monitoring and controlling them;"

h) current item 10 and 11 shall become item 13 and 14;

and so is created) 15:

"15. The European insurance and occupational pensions authority and the European Securities and markets authority.

2. in the Al. 4, the words "para. 1, item 3 – 10 ' shall be replaced by "para. 1, item 3-15 ".

3. Paragraph 6 is hereby repealed.

§ 33. In art. 65, para. 2, after the word "States" a comma and the words "and of the EBA ' shall be replaced by ' of the ESRB, the EBA and the European Securities and markets authority.

§ 34. Art is created. 65A:

"Art. 65. Article 63 shall not apply in cases where the BANK published the results of stress tests carried out in accordance with art. 32 of Regulation (EC) no 1093/2010 as well as when providing these results of EBA in order the publication of the results for the banking system in the European Union. "

§ 35. In art. 70 is made the following changes and additions:

1. Paragraph 2 shall be replaced by the following:

"(2) any bank discloses on its official website information about the compliance with the requirements of this law and its implementing acts in the field of corporate governance and remuneration at banks."

2. Al are created. 3, 4, 5, 6 and 7:

(3) disclosure of the information by the banks under Part 8 of Regulation (EC) no 575/2013 takes place once a year, within three months after the end of the period to which it relates. Disclosure on a consolidated basis is carried out once a year, within 6 months after the end of the period to which it relates.

(4) Disclosure under para. 3 is carried out by the official website of the Bank and in at least one media.

(5) parent companies published annually – in full or through equivalent information references – a description of the legal structure and the management and organizational structure of the group, including persons with whom they have close links as well as information on art. 89, para. 3.

(6) any bank discloses separately on an annual basis, for the Republic of Bulgaria, of the other Member States and third countries in which the Bank has subsidiaries or branches, has established the following information on a consolidated basis:

1. name, description of activities and geographic location;

2. amount of turnover;

3. as the number of full-time employees;

4. financial result of operations before tax;

5. accrued taxes on the financial result of operations;

6. profitability of the assets obtained as the ratio of net profit to total balance sheet total;

7. received State subsidies.

(7) information under para. 6 is the subject of an independent financial audit and published as an annex to the annual financial statement of an individual or, where applicable, on a consolidated basis. "

§ 36. In art. 73 following amendments and supplements shall be made:

1. In paragraph 8. 1 item 4 shall be amended as follows:

"4. the strategies and policies for the taking, management, monitoring, control and reduction of the risks to which it is exposed, or may be, exposed to the Bank, including the risks posed by macroeconomic environment in which it operates in the phase of economic cycle;".

2. Al are created. 5 and 6:

"(5) the technical criteria to be met by the banks ' policy for the management and control of the risk in the Al. 1, item 4, and the requirements for the management and organizational structure of the Bank shall be determined by an Ordinance of the BNB.

(6) where Regulation (EC) no 575/2013 provides the right of the competent authority to judge and impose specific requirements or criteria in relation to the activities of banks, these requirements and criteria can be specified by an Ordinance of the BNB.

§ 37. In art. 73a create al. 3, 4 and 5:

"(3) the requirements of paragraphs 1 and 2. 1 shall apply on an individual and on a consolidated basis by each bank.

(4) in cases where the Bank is controlled by a financial holding company or a mixed financial holding company parent activity to the extent and in the manner set out in part one, title II, Chapter 2, sections 2 and 3 of Regulation (EC) no 575/2013, it shall perform the obligation under paragraph 1. 3 on the basis of the consolidated situation of the financial holding company or a mixed financial holding company.

(5) where a financial holding company or a mixed financial holding company parent activity on the territory of the Republic of Bulgaria controls more than one bank, al. 4 apply only to the Bank on which exercise supervision on a consolidated basis in accordance with art. 90. "

§ 38. Create art. 73 c and 73 (d):

"Art. 73. (1) in any bank creates Committee for the selection of candidates for members of the Board of Directors and Executive Management Award members or candidates for members of the Management Board. Committee members can only be members of the Supervisory Board or Board of Directors, non-executive members.


(2) the requirements for the activities of the Committee of selection shall be determined by an Ordinance of the BNB.

Art. 73. (1) every bank shall draw up a recovery plan containing actions and measures it may take to recover its financial condition in the event of financial difficulties.

(2) the plan referred to in paragraph 1. 1 sent to the BULGARIAN NATIONAL BANK, which may issue a reasoned recommendation for his change.

(3) the requirements for the recovery plan shall be determined by an Ordinance of the BNB.

§ 39. In art. 74 Al is created. 4:

"(4) any bank establishes the procedure by which employees may report violations within the institution of the private and independent line."

§ 40. In art. 79 make the following amendments and additions:

1. Paragraphs 1, 2 and 3 shall be read with the following adaptations:

(1) the Bulgarian National Bank shall exercise supervision over the activities of banks and, where applicable, of financial holding companies and mixed-activity financial holding companies to establish compliance with the requirements of this Act and of the Regulation (EC) no 575/2013, as well as of the acts on their application to ensure the safe and secure management of banks and the risks to which they are or may be exposed as well as for the maintenance of adequate equity risks.

(2) the Bulgarian National Bank shall exercise supervision over the makroprudencialen and banks in order to maintain the stability of the banking system and in relation to the prevention or reduction of both the systemic risks – results from the activity of credit institutions and the identification and restriction of expression of the macroeconomic factors threatening the stability of the banking system.

(3) the information generated and collected pursuant to this chapter, is professional secrecy, except where the law expressly provides for its disclosure or publication. "

2. in the Al. 4, the words "para. 1 – 3 covers "are replaced by" para. 1 and the supervisory review under art. 79 in the cover.

3. a para. 12:

(12) the Bulgarian National Bank investigate alerts to potential wrongdoing or of this Act, Regulation (EC) no 575/2013 and the acts on their application, applying for the adoption of special procedures, including by officials of banks, which are subject to appropriate protection against adverse effects, the protection of personal data and privacy of the information. "

§ 41. In Article 79a, para. 1 the following endorsements are added:

1. In paragraph 1, add "and, where appropriate, the supervisory colleges".

2. paragraph 3 shall be inserted:

3. works closely with the ESRB and follows recommendations issued by him, unless there are proper reasons for non-implementation, which is obliged to expose. "

§ 42. Art is created. 79 in:

"Art. 79. (1) the Bulgarian National Bank shall perform supervisory review of the rules, strategies, procedures and mechanisms introduced by banks in compliance with the requirements of this law, of Regulation (EC) no 575/2013 and the acts on their implementation and evaluate:

1. the risks to which banks are or may be exposed;

2. the risks which the Bank creates for the financial system, having regard to the criteria for identifying and measuring systemic risk according to art. 23 of Council Regulation (EC) no 1093/2010 and recommendations of the ESRB;

3. risks identified through the stress tests, taking into account the nature, scale and complexity of the Bank's activities.

(2) on the basis of the review and the assessment RATES determines whether the rules, strategies, procedures and mechanisms introduced by the banks, the manner of their implementation, as well as their own capital and liquid assets provide a sound management and coverage of risks.

(3) the frequency and intensity of the supervisory review and evaluation shall be determined by the size of the Bank, by its systematic significance of the nature, scale and complexity of its activities. the supervisory review and evaluation shall be carried out at least once a year.

(4) the Bulgarian National Bank shall inform without delay the EBA for the results of the review where it finds that the Bank could raise systemic risk within the meaning of art. 23 of Council Regulation (EC) no 1093/2010.

(5) the supervisory review covers the elements specified by an Ordinance of the BNB.

(6) the Bulgarian National Bank shall inform the EBA for:

1. the operation of the process to review and evaluation;

2. the methodology by which decisions are made under para. 1, under art. 80 (b) and 80 in and to impose supervisory measures and sanctions.

(7) where it finds that banks with a similar risk profile are or may be exposed to similar risks or pose similar risks to the financial system, the BANK can make to these banks supervisory review and surveillance assessment and to implement appropriate supervisory measures with similar or identical way. In these cases, the BANK shall notify the EBA.

(8) the supervisory review and assessment, as well as administrative measures and penalties shall be applied in accordance with the level of implementation of the provisions of part one, title II of Regulation (EC) no 575/2013. "

§ 43. In art. 80 is made the following changes and additions:

1. Paragraph 1 shall be amended as follows:

(1) the Bulgarian National Bank shall have the right to require banks and, where applicable, by the financial holding companies and mixed-activity financial holding companies, their shareholders or partners to provide all the necessary accounting and other documents, as well as information about their activities, and to carry out inspections on the spot by authorised by her staff and other persons and to collect evidence for the identification of violations. "

2. in the Al. 2 Finally a comma and add "as well as the right of access under para. 2, item 1 ".

3. in the Al. 3 create item 8 and 9:

"8. to require explanations from banks and persons referred to in para. 6, their representatives or employees;


9. to ask questions of any other person who gave the consent in order to collect information relating to the subject matter of the inspection. "

4. a new para. 6:

"(6) the Bulgarian National Bank has the powers under this article and of:

1. financial holding companies;

2. mixed-activity financial holding companies;

3. mixed-activity holding;

4. the subsidiaries of banks or the persons under item 1 – 3;

5. third parties who carry out external activities for banks or persons under item 1 – 3.

5. The current paragraph. 6 it al. 7.

§ 44. In Chapter Eleven, section I create art. 80, 80 (b) and 80 in:

"Art. 80. (1) the Bulgarian National Bank once a year and shall adopt, if necessary, update the plan for carrying out audits of banks, which takes into account the process of supervisory review and oversight assessment under art. 79. the Plan contains:

1. Description of how the BANK plans to carry out its tasks and to allocate resources;

2. banks, for which the BANK deems it necessary;

3. banks, for which it is intended to be the subject of enhanced surveillance, and actions for the exercise of such supervision;

4. schedule of on-the-spot checks in banks, including branches and subsidiary companies in them, in accordance with art. 81, para. 2, art. 87, para. 5 and 7, art. 91 and 97.

(2) the plan referred to in paragraph 1. 1 shall include and the banks:

1. for whom the results of the stress tests or of the supervisory review and evaluation show significant risks to their current financial standing or violations of this law, of Regulation (EC) no 575/2013 and the acts on their implementation;

2. that create systemic risk to the financial system.

(3) in the case of the banks, which are subject to increased surveillance in the Al. 1, item 3, may:

1. increase the number or frequency of on-the-spot checks in the Bank;

2. order the permanent presence of authorised by her officials at the Bank;

3. additional or more frequent presentation of information from the Bank;

4. carry out additional or more frequent reviews of operational or strategic plans or the plans of the activity of the Bank;

5. carry out thematic inspections to monitor specific risks which are likely to be realized.

(4) the Bulgarian National Bank may conduct audits of activities carried out in the Republic of Bulgaria by a branch of the Bank, licensed in another Member State, regardless of the plan for carrying out audits, prepared by the competent authority of the sending State.

(5) a plan prepared by the BNB to carry out surveillance checks shall not prevent the competent authorities of the host State to be conducted on a case by case basis checks and on-the-spot inspections of the activities carried out by the branches of the banks on their territory.

(6) in preparing a plan for the BANK supervisory checks shall take into account the information and findings obtained from the competent authority of the host Member State as a result of on-the-spot checks in the branch of the Bank, licensed in the Republic of Bulgaria, including in relation to the stability of the financial system in the host country.

Art. 80 (b). The Bulgarian National Bank shall carry out at least once a year, the stress tests of banks for supervisory purposes.

Art. 80. (1) the Bulgarian National Bank does at least once every three years for a regular review of compliance with the requirements for banks in terms of approaches, for which permission is required for use for the calculation of capital requirements in accordance with part three of Regulation (EC) no 575/2013, paying particular attention to:

1. changes in the Bank's activities, and

2. the application of these approaches to new products.

(2) the Bulgarian National Bank shall analyse and assess whether the Bank uses modern and well developed techniques and practices in the use of internal approaches.

(3) When a bank authorised to use an internal approach, ceases to satisfy the requirements for the application of this approach, the BANK requires the Bank to:

1. demonstrate satisfactorily that the failure to comply with these requirements there is no significant effects, or

2. submit a plan to restore compliance with the requirements in a timely manner, the period for its implementation; May require modification of the plan, if it is likely to lead to full compliance with the requirements or if the period is not appropriate.

(4) if the probability the Bank to achieve the recovery of the compliance with the requirements under paragraph 1. 3 is small or it is not presented convincing evidence that the effect of non-compliance is immaterial, BNB takes internal authorization approach or limiting it to areas where the requirements are met, or can achieve compliance with the requirements within a reasonable period of time, determined in accordance with para. 3.

(5) in a review under para. 2 BANK takes into account the guidelines of the EBA, indicating the recommended techniques for the consistent application of adequate internal approaches. "

§ 45. In art. 81 following amendments and supplements shall be made:

1. In paragraph 8. 1, first sentence, the words "the sending Member State ' shall be replaced by" sending State ".

2. paragraph 2 is replaced by the following:

"(2) the Bulgarian National Bank may carry out on-the-spot check at a branch of the Bank, licensed in another Member State, and to request information about its activities and for supervisory purposes when the information is relevant to preserving the stability of the financial system in the Republic of Bulgaria."

3. a new paragraph. 3:


(3) before carrying out the inspection shall consult the NATIONAL BANK, the competent authorities of the sending State. After performing the verification RATES made available to the competent authorities of the sending State the information received and the findings that are relevant to the assessment of risk to the Bank or to the stability of the financial system of the Republic of Bulgaria. "

4. The current paragraph. 3 it al. 4 and in her words "the sending Member State ' shall be replaced by" sending State ".

5. The current paragraph. 4 it al. 5.

6. The current paragraph. 5 it al. 6 and it creates the third sentence: "the Bulgarian National Bank may request and information that is required for the designation of a branch as significant or for supervisory purposes in respect of the implementation of these activities in the Republic of Bulgaria."

7. The current paragraph. 6 it al. 7 and shall be amended as follows:

(7) the measures that apply to BANK branches as the competent authority of the host State, as well as the measures established by the NATIONAL BANK as part of its monetary policy, may not be more stringent and restrictive than those taken against banks licensed in the Republic of Bulgaria. "

§ 46. Article 82 shall be replaced by the following:

"Art. 82. (1) where, on the basis of the information referred to in art. 87, para. 2 the BNB establishes that the Bank, licensed in a Member State, which has a branch or provides services directly on the territory of the Republic of Bulgaria is not complying with the legal provisions applicable to the implementation of banking activities in the country or the provisions of Regulation (EC) no 575/2013, as well as when there is a substantial chance to observe them, it shall notify the competent authority of the sending State, with a view to taking appropriate measures to suspend or penalize infringements.

(2) if the BANK considers that the competent authority of the sending State has not taken the necessary measures to ensure compliance with the law, of Regulation (EC) no 575/2013 and the acts on their application or to reduce the risk of non-compliance, it may refer the matter to the EBA and request examination under art. 19 of Regulation (EC) no 1093/2010.

(3) Notwithstanding the provisions of paragraphs 1 and 2. 1 and 2 and of art. 81, para. 7 may take measures to prevent or penalize infringements of this law, its implementing acts or provisions relating to the protection of the public interest, including to impose a prohibition to carry out transactions on the territory of the Republic of Bulgaria by the Bank.

(4) the measures and penalties applied by the BANK, shall be communicated in writing by the persons who constitute the Bank on the territory of the Republic of Bulgaria.

(5) in the cases referred to in para. 3 the Bank is obliged to implement measures and penalties applied by the BANK. "

§ 47. Article 83 shall be amended as follows:

"Art. 83. (1) in urgent cases, and where necessary taking measures for protection against financial instability that could jeopardise the interests of depositors, investors and/or other clients of the Bank under art. 82, para. 1, may implement the necessary preventive measures, including the suspension of payments, before applying the procedure under art. 82 and the competent authority of the sending State to implement appropriate measures to suspend or punish breaches or remedial measures. Measures should be proportionate to the aim of applying them and should not provide a privilege for the creditors of the Bank in the country against creditors in other Member States. In these cases the BANK shall immediately inform the European Commission, EBA and the competent supervisory authorities of the Member States. The measures implemented by the BANK, shall be communicated in writing by the persons who constitute the Bank on the territory of the Republic of Bulgaria.

(2) the measures referred to in paragraph 1. 1 ends with the taking of remedial measures by the administrative or judicial authorities of the sending State.

(3) the Bulgarian National Bank shall revoke the measures referred to in paragraph 1. 1 in cases where they can no longer achieve their effect. "

§ 48. In art. 87 following amendments and supplements shall be made:

1. In paragraph 8. 2, item 2, the word "independently" shall be replaced by "of an individual," and after the word "risks" is added "other factors that may affect the systemic risk posed by the activities of the Bank.

2. Create a new para. 3, 4, 5, 6 and 7:

(3) at the request of a competent authority of the host State BANK provides clarification on how the information is taken into account and the findings submitted by him pursuant to para. 2.

(4) where a BANK does not agree with the measures which the competent authority of the host Member State intends to apply, on the basis of information provided by the BULGARIAN NATIONAL BANK information and explanations, it may refer the matter for consideration by the EBA in accordance with art. 19 of Regulation (EC) no 1093/2010.

(5) where a bank licensed in another Member State carries on business through a branch in the Republic of Bulgaria, the BULGARIAN NATIONAL BANK may submit to the competent authorities of the sending State request for explanation on what are considered the information and findings.

(6) where it considers that the information provided by the information under para. 2 has not led to take appropriate measures, the BULGARIAN NATIONAL BANK shall notify the competent authorities of the sending State and the EBA and take appropriate measures to prevent further violations in order to protect the interests of depositors and users of the services or the stability of the financial system.


(7) where a bank licensed in the Republic of Bulgaria, carries on business through a branch in other Member States, the BANK shall immediately forward to the competent authorities of the host countries, the information and the findings obtained in connection with the supervision of liquidity in accordance with part vi of Regulation (EC) no 575/2013 and the supervision on a consolidated basis, in so far as this information and the findings are relevant for the protection of depositors or investors in the host country. "

3. a para. 8:

"(8) where in respect of a bank licensed in the Republic of Bulgaria, carrying out the activity in one or more Member States through branch, occur or has reason to suspect that you may encounter difficulties, liquid BNB shall immediately inform the competent authorities of all host countries, including for the preparation and implementation of the recovery plan and the surveillance measures."

4. The current paragraph. 3 it al. 9.

5. The current paragraph. 4 it al. 10 and in her words "para. 3 "shall be replaced by" para. 9. "

6. The current paragraph. 5 it al. 11 and it also creates a second sentence: "in these cases shall be governed by the law of the Member State concerned."

7. The current paragraph. 6 it al. 12 and in her words "everywhere the sending Member State ' shall be replaced by" sending State ".

8. The current paragraph. 7 it al. 13 and in it all over the words "host Member State" shall be replaced by the words "the host country".

§ 49. In art. 87 and al. 6 shall be amended as follows:

"(6) where a bank licensed in another Member State carries on business through a branch in the Republic of Bulgaria, important and where the authority of the sending State has conducted consultation with BNB or where, after such consultation the BNB continues to believe that the operational plans for the recovery of the liquidity of the Bank are not appropriate, may refer the matter to the EBA and ask for his assistance in accordance with article 19 of Regulation (EC) no 1093/2010."

§ 50. In art. 87 (b) Al. 4, 5 and 6 are amended:

"(4) the Bulgarian National Bank cooperates in accordance with art. 92, para. 1, item 3 with the competent authority of the host Member State in which the Bank, licensed in the Republic of Bulgaria, carries on business through a branch, defined as significant, and provides:

1. the information referred to in art. 95, para. 3, item 3 and 4;

2. the results of the risk assessments carried out in the framework of supervisory review under art. 79 c;

3. the joint solution for determining the adequacy of capital under art. 92 and 92 – where applicable;

4. information on supervisory measures under art. 103, as well as the penalties imposed pursuant to art. 103 and additional requirements – in cases where the said assessments and decisions are of importance for the respective branches.

(5) the Bulgarian National Bank shall consult the competent authorities of the host countries in which they found significant branches of banks licensed in the Republic of Bulgaria, on operational plans to restore liquidity, if that is relevant to the assessment of liquidity risk arising from exposures denominated in local currency in the host country.

(6) in the event of an emergency, referred to in art. 93, para. 1, which potentially threaten financial stability in the Republic of Bulgaria or in the host State, shall notify BNB bodies under art. 64, para. 1, item 13 and al. 2. "

§ 51. Art is created. 87:

"Art. 87. the designation of a branch as significant shall not affect the powers and functions of the NATIONAL BANK under this law. "

§ 52. In art. 89 Al are created. 3, 4 and 5:

"(3) a Bank, a financial holding company, a mixed financial holding company or a mixed-activity holding company subject to supervision on a consolidated basis by the BNB, bring internal rules, procedures and mechanisms required under this Act, and in the subsidiaries, including those who are not covered by this law. Rules, procedures and mechanisms should be consistent and well-integrated and allow subsidiaries to produce any data and information relevant for the purposes of supervision.

(4) where a credit institution from the European Union or a bank controlled by a financial holding company by the European Union or of a financial holding company with mixed mother activity of the European Union, the BULGARIAN NATIONAL BANK, the implementation of the requirements for the introduction of rules, procedures and mechanisms under para. 3 is illegal under the legislation of the third country in which the subsidiary is established, the Bank does not apply these requirements in their dealings with him.

(5) where a bank licensed by the Bulgarian National Bank, is part of the Bank Group, the financial holding company, a mixed financial holding company or a mixed-activity holding company, it shall submit annually to the BNB, within 30 working days following the end of the calendar year, information about the structure, in which participated, including the changes. Information for financial holding company, a mixed financial holding company or a mixed-activity holding company shall be submitted to the BANK by the Bank – a subsidiary of the holding, which is licensed by the Bulgarian National Bank. "

§ 53. In art. 92, para. 2 the words "art. 95, para. 7, paragraph 2 "shall be replaced by" art. 95, para. 3, item 4 and al. 7, item 2, "and a comma.

§ 54. Article 92 (a) shall be replaced by the following:

"Art. 92. (1) where is the consolidating supervisor, BNB collaboration with other competent authorities responsible for the supervision of subsidiaries of the parent credit institution of the European Union, the parent financial holding company of the European Union or of a financial holding company parent of a mixed European Union take a joint decision on the establishment of special liquidity requirements according to art. 103 (a) and on the adequacy of the framework for the management of the liquidity risk of the parent credit institution or of the holding.


(2) the decision on para. 1 shall be taken within one month of the date on which the BANK has granted to the other competent authorities, a report containing an assessment of the liquidity risk profile of the group. In making the decision shall take into account the risk assessment of subsidiaries performed by other competent authorities.

(3) If within the time limit referred to in paragraph 1. 2 a joint decision is not reached, BNB shall take decision independently on the application on a consolidated basis of the special liquidity requirement under art. 103 (a) and on the adequacy of the framework for the management of liquidity risk, taking into account the risk assessment of subsidiaries performed by other competent authorities. Before taking a decision, the BNB self own initiative or at the request of any of the other competent authorities consulted with EBA, taking into account its recommendation and reasons for any significant departure from her.

(4) where, before the expiry of the period referred to in paragraph 1. 2 the question has been referred for consideration by the EBA, BNB shall defer the taking of a decision on al. 3 and is awaiting the decision, which the EBA may take pursuant to art. 19 (3) of Regulation (EC) no 1093/2010. In this case, the BANK shall take its decision in accordance with the decision of the EBA.

(5) the decisions referred to in paragraph 1. 1 and 3 motivate and provide the parent credit institution of the European Union, and under para. 3 – and of other competent authorities. In the grounds of the decision on para. 3 indicate the opinions of the other competent authorities expressed during the period referred to in paragraph 1. 2.

(6) the decisions referred to in paragraph 1. 1 and 3 are reviewed annually or in case of extraordinary circumstances, when one of the other competent authorities submit a reasoned written request to BANK for the updating of the decision for the application of special liquidity requirement under art. 103. In the case of a request may reconsider decisions under para. 1 and 3 only with the participation of competent authority requesting. "

§ 55. Article 92 (b) shall be replaced by the following:

"Art. 92 (b) (1) When a bank licensed in the Republic of Bulgaria, is a subsidiary of the parent credit institution of the European Union, the parent financial holding company from the European Union or of the financial holding company parent of a mixed European Union, BNB participated in making a joint decision on the establishment of special liquidity requirements according to art. 103 (a) and on the adequacy of the framework for the management of the liquidity risk of the group or holding.

(2) where, within one month, no joint decision is reached under paragraph 1. 1, may ask for the consolidating supervisor shall consult with the EBA.

(3) where a joint decision is not reached, BNB shall take a decision independently on the application of special liquidity requirement under art. 103 (a) and on the adequacy of the framework for the management of liquidity risk to the Bank, taking into account the opinion of the supervisor and the recommendation of the EBA when one is requested.

(4) If, before the expiry of the period referred to in para. 2 the question has been referred for consideration by the EBA, BNB shall defer making a decision under paragraph 1. 3 and is awaiting the decision, which the EBA may take pursuant to art. 19 (3) of Regulation (EC) no 1093/2010. In this case, the BANK shall decide in accordance with the decision of the EBA.

(5) the decisions referred to in paragraph 1. 1 and 3 are reviewed annually. In the event of an emergency may make a reasoned request for a review of the decision under paragraph 1. 1 or the informal decision of the supervisor for the application of a specific requirement for liquidity. "

§ 56. In art. 92 in the following modifications are made:

1. In paragraph 8. 1 the words "art. 79, para. 2 and 3 and in the application of the measure in respect of an infringement under art. 103, para. 1, item 11 "shall be replaced by the words" and article. 79.

2. in the Al. 2 the words "art. 79, para. 2 and 3 and in the application of the measure in respect of an infringement under art. 103, para. 1, item 11 "shall be replaced by the words" and article. 79 in the possibility for the establishment of an additional capital requirement under art. 103, para. 2, item 5.

3. in the Al. 3 the words "art. 79, para. 2 and 3, of the measure in respect of an infringement under art. 103, para. 1, item 11 "shall be replaced by" art. 79.

§ 57. In art. 92 is hereby amended as follows:

1. In paragraph 8. 3 the words "art. 79, para. 2 and 3, the application of the measure in respect of an infringement under art. 103, para. 1, item 11 "shall be replaced by" art. 79.

2. in the Al. 5, the words "article. 136, para. 2 of Directive 2006/48/EC "are replaced by" article. 104 (1) (a) of Directive 2013/36/EC of the European Parliament and of the Council of 26 June 2013 on access to the pursuit of the business of credit institutions and on the prudential supervision of credit institutions and investment firms amending Directive 2002/87/EC and repealing directives 2006/48/EC and 2006/49/EC (OJ L 176/338 of 27 June 2013) , hereinafter referred to as ' Directive 13/36/EC ".

§ 58. In art. 92 (e) make the following amendments and additions:

1. In paragraph 8. 1, ' 92 and ' shall be deleted.

2. in the Al. 2:

a) in paragraph 2 the words ' where appropriate ' shall be deleted;

b) in paragraph 3 the word "inspection" is replaced by "supervisory checks pursuant to art. 80 and "and the words" art. 79, para. 2 and 3 and article. 103, para. 1, item 11 "shall be replaced by" art. 79 c ";

c) in item 5, the words "Directive 2006/48/EC" are replaced by "Regulation (EC) no 575/13 and Directive 13/36/EC".

3. in the Al. 5 after the word "banks" is added "by the ESCB", and the words "Directive 2006/48/EC ' is replaced by ' Directive 13/36/EC and, where applicable, under art. 54 and 58 of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC ".

4. a new para. 9:


(9) in case of disagreement between competent authorities participating in the surveillance Board, BNB may refer the matter to the EBA and ask for his assistance in accordance with art. 19 of Regulation (EC) no 1093/2010. "

5. The current paragraph. 9 it al. 10 and add "and in Regulation (EC) no 575/2013".

§ 59. In art. 92e finally a comma and add "including powers of the consolidating supervisor art. 92 e, para. 9. "

§ 60. In art. 93, para. 1, the words ' when consolidating supervisory authority "shall be deleted and the words" art. 64, para. 1, item 10 and art. 64, para. 2 "are replaced by" article. 64, para. 1, item 13 and al. 2. "

§ 61. In art. 95, para. 6 the words "turn to the EBA ' shall be replaced by" refer the matter for consideration by the EBA by the procedure of art. 19 of Regulation (EC) no 1093/2010 ".

§ 62. In art. 96 creates the second sentence: "in assessing the reputation into account and the data from the registry for administrative sanctions, led by the EBA.

§ 63. Art is created. 97 (a):

"Art. 97. (1) where a mixed-activity holding company is a parent undertaking of one or more banks licensed in the Republic of Bulgaria, the BULGARIAN NATIONAL BANK shall exercise general supervision over transactions between these banks and the holding and its subsidiaries, without prejudice to the provisions of part four of the Regulation (EC) no 575/2013.

(2) the banks under para. 1 bring adequate risk management processes and internal control mechanisms, including sound reporting and accounting to identify, measure, monitor and control transactions with appropriately mother holding and its subsidiaries. Banks report to the BANK any significant deal with them other than the transactions referred to in Article 394 of Regulation (EC) no 575/2013.

(3) procedures and transactions referred to in para. 2 are subject to supervision by the NATIONAL BANK. "

§ 64. In art. 100 the following modifications are made: 1. In para. 1 the word "undertaking" is replaced by "company".

2. in the Al. 3 the word "undertaking" is replaced by "company".

§ 65. In art. 101 following amendments and supplements shall be made:

1. In paragraph 8. 1 Add "and of Regulation (EC) no 575/2013".

2. in the Al. 3, first sentence, the words "legislation of the European Community ' shall be replaced by" art. 111-127 of Directive 2013/36/EU ".

3. in the Al. 4, after the words "the principles under this Act" there shall be added "and in Regulation (EC) no 575/2013", and in the end, the words "under this Act" shall be deleted.

§ 66. In art. 102 following amendments and supplements shall be made:

1. In paragraph 8. 1:

a) in paragraph 3 the words "art. 79, para. 2 "are replaced by" article. 79 c ";

b) in paragraph 4, after the words "carried out by the BULGARIAN NATIONAL BANK" is added "as well as the number and type of supervisory measures and sanctions imposed for violation of this law, of Regulation (EC) no 575/2013 and the acts on their application" and a comma.

2. in the Al. 3, after the word "Disclosure" is added "under para. 1. "

3. a para. 4:

"(4) for the purposes of part 5 of Regulation (EC) no 575/2013 BNB published:

1. common criteria and methodologies adopted to review compliance with art. 405-409 of Regulation (EC) no 575/2013;

2. on an annual basis, a summary of the results of the supervisory review and description of the surveillance measures applied in the event of a breach of art. 405-409 of Regulation (EC) no 575/2013. "

§ 67. In art. 103 following amendments and supplements shall be made:

1. In paragraph 8. 1:

a) in paragraph 1, after the word "law" is added "of Regulation (EC) no 575/2013 or";

b) point 11 is replaced by the following:

"11. the existence of numerous cases of excesses under art. 366 of Regulation (EC) no 575/2013 when using the internal market risk model, which show that the model is not sufficiently accurate; "

in t. created) 12, 13, 14, 15, 16 and 17:

"12. the submission of incomplete or inaccurate information in the performance of their duties under art. 99 (1), art. 101, art. 394 (1), art. 415, paragraphs 1 and 2 and art. 430 (1) of Regulation (EC) no 575/2013 or disclosure of incomplete or inaccurate information in the performance of their duties under art. 431, paragraphs 1-3 and art. 451 (1) of Regulation (EC) no 575/2013;

13. repeatedly or for an extended period of time, failure to comply with the requirement by the Bank under art. 412 of Regulation (EC) no 575/2013;

14. non-compliance with the conditions laid down in art. 405 of Regulation (EC) no 575/2013, where the Bank holds a securitisation position;

15. making payments to holders of instruments included in the own funds of the Bank, in violation of the restrictions laid down by the Ordinance under art. 39, para. 3, or in cases in which, in accordance with art. 28, or 51 63 of Regulation (EC) no 575/2013 shall prohibit such payments to holders of instruments included in equity;

16. admission by Bank of one or more persons who do not meet the requirements under art. 10 or 11, to participate in the composition of the Management Board of the Board of directors or of the Supervisory Board;

17. the absence of approval by the BNB of capital conservation plan drawn up by the Bank pursuant to the Ordinance under art. 39, para. 2. "

2. in the Al. 2:

a) point 5 is replaced by the following:

"5. Requests the Bank to hold own funds in excess of requirements laid down by the Ordinance under art. 39, para. 2 and in Regulation (EC) no 575/2013, in connection with risks or elements of them, which do not fall within the scope of art. 1 of the regulation; in determining the additional capital requirement on the basis of the review and evaluation referred to in art. 79 in regard to:

a) qualitative and quantitative characteristics of the process for the assessment of the Bank's capital under art. 73A;

b) adequacy of current rules for internal management and control under art. 15, para. 1, item 4 and 6;

in the result of) supervisory review and assessment of art. 79 and 80 in (d);

d) assessment of the systemic risk; "

(b)) created new item 6 and 7:


6. order the removal of shortcomings in terms of the coverage of the risks of internal approach or to take the necessary measures to limit their consequences, including by imposing a higher multiplier coefficients;

7. take the authorisation to use internal approach or to require the timely improvement of approach; "

in the past) so 6 becomes item 8 and add "as well as to order the reduction of the risk, which is inherent to the activities, products and systems of the Bank";

d) current t. 7, 8 and 9 shall become item 9, 10 and 11;

(e)) the current item 10 becomes 12 and shall be amended as follows:

"12. Requests the Bank to use its net profit to increase equity or to prohibit:

a) payment of dividends or the allocation of capital in another form, or

b) payment of interest on shareholders or holders of instruments of the additional capital, as compliance with this ban does not constitute a failure on the part of bank instruments; "

is the current item) 11, 12, 13, 14, 15 and 16 shall become item 13, 14, 15, 16, 17 and 18;

(g)) the current item 17 becomes so 19 and finally adds "including require public disclosure of additional information or amendments to the Statute of the Bank;

h) creates a new item 20:

"20. Requests the implementation of a special policy for provisioning or treatment of assets through capital requirements;"

and CFOs) e.g. 18 becomes p. 21;

k) t is created. 22:

"22. disclose publicly information about the breach with an indication of the offender;

l) previous p. 19, 20 and 21 shall become item 23, 24 and 25.

3. in the Al. 6, first sentence, the words "para. 2, item 15 "are replaced by" para. 2, item 17, "and in the second sentence the words" para. 2, t. 7, 10 and 19 ' are replaced by ' al. 2, item 9, 19 and 22. "

4. in the Al. 7 in the first sentence add "or regulation (EC) no 575/2013, as well as when there is a substantial probability to not comply with them," in the second sentence, after the word "report" is added "immediately" and the word "State" shall be deleted and the third sentence: "when it is informed by the competent authority of the host State for the preventive measures taken against the Bank and the BULGARIAN NATIONAL BANK considers that these measures are not appropriate, it may refer the matter to the EBA and request examination under art. 19 of Regulation (EC) no 1093/2010. "

5. Al are created. 13 and 14:

(13) the Bulgarian National Bank may apply the measures referred to in paragraph 1. 2 and when it is likely that the Bank violates the provisions of this law, of Regulation (EC) no 575/2013 and the acts on their application within the next 12 months.

(14) the Bulgarian National Bank shall inform the EBA for each implemented a permanent ban under para. 2, item 13, including for the appeal and the results of it. "

§ 68. Art is created. 103 (a):

"Art. 103. (1) the Bulgarian National Bank may impose special requirements for liquidity, if, on the basis of the review and the assessment carried out in accordance with art. 79 in considers that not covered all risks relating to liquidity, which is exposed or likely to be exposed to the Bank, taking into account:

1. the pattern of business activity of the Bank;

2. liquidity management policy of the Bank;

3. the results of the supervisory review and evaluation under art. 79 c;

4. systemic liquidity risk, which threatens the integrity of the financial market.

(2) the Bulgarian National Bank must have an additional capital requirement under art. 103, para. 2, item 5, when:

1. the Bank does not comply with the requirements under art. 73, para. 1, art. 73 (a), para. 1 and 2, art. 73, art. 121 or art. 393 of Regulation (EC) no 575/2013;

2. the risks or elements of them are not covered by the requirements for own funds laid down in the Ordinance under art. 39, para. 2 or in Regulation (EC) no 575/2013;

3. not expected within a reasonable period of time as a result of informal implementation of other measures to improve Bank sufficient rules, procedures, mechanisms and strategies;

4. the review referred to in art. 79 in or art. 80 in, al. 3 and 4 shows that failure to comply with the requirements for the implementation of the approach is likely to lead to inadequate capital requirements;

5. risks are likely to be underestimated, regardless of compliance with the applicable requirements of this law and of Regulation (EC) no 575/2013;

6. the Bank has informed the BANK that the results of the stress test under art. 377 (5) of Regulation (EC) no 575/2013 substantially exceed the requirement for her wallet for korelacionno trading. "

§ 69. In art. 104 the following modifications are made:

1. In paragraph 8. 1 the words "art. 103, para. 2, item 2 or 9 "shall be replaced by" art. 103, para. 2, item 2 or 11 ".

2. in the Al. 4, 5, 6 and 8, the words "article. 103, para. 2, item 9 "shall be replaced by" art. 103, para. 2, item 11.

§ 70. In art. 110, para. 4, the words "of art. 39, para. 2 and 3 ' shall be replaced by "for equity under art. or 39 of Regulation (EC) no 575/2013 ".

§ 71. In art. 115, para. 3 the words "art. 103, para. 2, item 19 "shall be replaced by ' art. 103, para. 2, item 22.

§ 72. In chapter eleven section IX is created with art. 121 (a):

Section IX

A restructuring plan of the Bank

Art. 121. (1) the Bulgarian National Bank shall draw up a plan for controlled restructuring of any bank licensed in the Republic of Bulgaria, which may be attached, if the Bank gets into financial difficulties.

(2) the restructuring plans are updated periodically and take into account the impact that would have had a bankruptcy of the particular bank in relation to its market share, business model or its relationship with other market participants on the financial markets as a whole, other banks and the conditions for their financing.

(3) the banks provided to the BANK in accordance with the principle of proportionality the information necessary for the compilation of reliable plans that contain options for the restructuring of the Bank. "


§ 73. In art. 135, para. 2 the words "the sending Member State ' shall be replaced by" sending State ".

§ 74. In art. 146, para. 1 the word "State" shall be deleted.

§ 75. In art. 151, para. 1 the words "art. 103, para. 2, item 20 and 21 and al. 8 "are replaced by" article. 103, para. 2, item 24 and 25 and al. 8. "

§ 76. In art. 152 the following endorsements are added:

1. In paragraph 8. 1, after the word "law" is a comma and add "of Regulation (EC) no 575/2013" and the pronoun "he" is replaced by "them".

2. in the Al. 2 and 3, after the word "Bank" is added "a financial holding company or a mixed financial holding company" and a comma.

§ 77. Create art. 152 (b), (c) and (d) in 152 152:

"Art. 152 (b). (1) in breach of art. 28, para. 1 or art. 33, para. 1 or 2 of the offender having:

1. where a natural person — a fine of up to the equivalent of $ 5 million. Euro;

2. When is a legal person – the penalty at a rate of up to 10 percent of annual turnover, including gross income, comprising interest receivable and similar income, income from shares and other securities with variable or fixed income and claims of commissions and/or fees.

(2) where the value of the acquired as a result of the infringement of art. 28, para. 1 or art. 33, para. 1 and 2 can be determined, the person having a fine, penalty payment accordingly, up to twice the spoils.

(3) in the cases referred to in para. 1, item 2 of gross revenues gross revenues shall be adopted in accordance with the consolidation of the ultimate parent of the previous year.

Art. 152. (1) in In violation of art. 34, para. 1 and 2, art. 36, para. 1, item 3, as well as for the infringements referred to in art. 103, para. 1, item 8 and item 12 – 16, the offender is required:

1. where a natural person — a fine of up to the equivalent of $ 5 million. Euro;

2. When is a legal person – the penalty at a rate of up to 10 percent of annual turnover, including gross income, comprising interest receivable and similar income, income from shares and other securities with variable or fixed income and claims of commissions and/or fees.

(2) where the value of the realized profit or loss izbegnatata as a result of the infringement can be determined, the person having a fine, penalty payment accordingly, up to twice the performance, respectively izbegnatata loss.

Art. 152. (1) the Bulgarian National Bank has published in its official website information for all penal provisions in force, which imposed penalties for violations of the law, of Regulation (EC) no 575/2013 and the acts of infringement, including the offender, the type and size of the penalty.

(2) the Bulgarian National Bank shall publish the information referred to in paragraph 1. 1 in summary form, when it considers that:

1. publication of personal information about an individual, the penalty is imposed that is excessive;

2. publication would endanger the stability of the financial markets or pending criminal proceedings;

3. the publication would cause disproportionate harm to the persons concerned.

(3) the publication referred to in paragraph 1. 1 shall be postponed for a reasonable period of time if there is a likelihood that the circumstances under para. 2 to lapse.

(4) the published information is available on the official website of the BULGARIAN NATIONAL BANK, within a period of not less than 5 years.

(5) the Bulgarian National Bank shall inform the EBA for all administrative penalties imposed under art. 152, 152 and 152 in, including any appeal and the results of it. "

§ 78. In the additional provisions the following amendments and additions:

1. § 1, para. 1:

a) point 6 is replaced by the following:

"6." Qualifiying holding "e concept within the meaning of art. 4, paragraph 1, item 36 of Regulation (EC) no 575/13. ';

b) in point 6 (b), (c), the words "and/or" shall be replaced by "or";

in 7 points), 8, 9 and 10 shall be amended as:

"7." control "is a concept within the meaning of art. 4, paragraph 1, item 37 of Regulation (EC) no 575/2013.

8. "parent undertaking" is a concept within the meaning of art. 4, paragraph 1, item 15 of Regulation (EC) no 575/2013.

9. "subsidiary" is a concept within the meaning of art. 4, paragraph 1, item 16 of Regulation (EC) no 575/2013.

10. "close links" is a concept within the meaning of art. 4, paragraph 1, item 38 of Regulation (EC) no 575/13. ';

d) items 12, 12 and 13 be amended thus:

"12." financial holding company "is a concept within the meaning of art. 4, paragraph 1, item 20 of Regulation (EC) no 575/2013.

12. "a mixed financial holding company" is a concept within the meaning of art. 4, paragraph 1, item 21 of Regulation (EC) no 575/2013.

13. "mixed-activity holding company" is a concept within the meaning of art. 4, paragraph 1, item 22 of Regulation (EC) no 575/13. ';

e) sections 16 and 17 be amended thus:

"16." sending State "is a concept within the meaning of art. 4, paragraph 1, item 43 of Regulation (EC) no 575/2013.

17. ' host State ' is a concept within the meaning of art. 4, paragraph 1, item 44 of Regulation (EC) no 575/13. ';

is 19 points), 20, 21 and 22 shall be read with the following adaptations:

"19." competent authority "is a concept within the meaning of art. 4, paragraph 1, item 40 of Regulation (EC) no 575/2013.

20. "license" is a concept within the meaning of art. 4, paragraph 1, item 42 of Regulation (EC) no 575/2013.

21. "ancillary services undertaking" is a concept within the meaning of art. 4, paragraph 1, item 18 of Regulation (EC) no 575/2013.

22. "branch" is a concept within the meaning of art. 4, paragraph 1, item 17 of Regulation (EC) no 575/13. ';

g) point 26 shall be repealed;

h) points 27, 28, 28A, 29 and 29A be amended thus:

"27." parent credit institution of the European Union "is a credit institution within the meaning of art. 4, paragraph 1, item 29 of Regulation (EC) no 575/2013.

28. "parent financial holding company by a Member State" is a concept within the meaning of art. 4, paragraph 1, item 30 of Regulation (EC) no 575/2013.

28A. "parent financial holding company with mixed activity by a Member State" is a concept within the meaning of art. 4, paragraph 1, item 32 of Regulation (EC) no 575/2013.

29. "parent financial holding company in the European Union" is a concept within the meaning of art. 4, paragraph 1, item 31 of Regulation (EC) no 575/2013.


29A. "parent financial holding company with mixed activity of the European Union" is a concept within the meaning of art. 4, paragraph 1, item 33 of Regulation (EC) no 575/13. ';

and) point 31 is replaced by the following:

31. "Consolidating" supervisor "is a concept within the meaning of art. 4, paragraph 1, item 41 of Regulation (EC) no 575/13. ';

k) create is that 32-49:

"32." investment firm "is a concept within the meaning of art. 4, paragraph 1, item 2 of Regulation (EC) no 575/2013.

33. "insurer" is a concept within the meaning of art. 4, paragraph 1, item (5) of Regulation (EC) no 575/2013.

34. "Reinsurer" is a concept within the meaning of art. 4, paragraph 1, item 6 of Regulation (EC) no 575/2013.

35. "Senior management personnel" are p rawling persons who exercise executive functions in the Bank and responsible and accountable to the Board or the Board of Directors in connection with its current management.

36. "systemic risk" is a risk of disruption in the financial system, which is able to cause serious negative consequences for the financial system and the real economy.

37. "management company" is an asset management company within the meaning of art. 4, paragraph 1, point 19 of Regulation (EC) no 575/2013.

38. Establishment of financial sector "is a concept within the meaning of art. 4, paragraph 1, item 27 of Regulation (EC) no 575/2013.

39. "central counterparty" is a concept within the meaning of art. 4, paragraph 1, item 34 of Regulation (EC) no 575/2013.

40. "the central banks of the ESCB" is a concept within the meaning of art. 4, paragraph 1, item 45 of Regulation (EC) no 575/2013.

41. "central banks" is a concept within the meaning of art. 4, paragraph 1, item 46 of Regulation (EC) no 575/2013.

42. On a consolidated basis "is a concept within the meaning of art. 4, paragraph 1, item 48 of Regulation (EC) no 575/2013.

43. "financial instrument" is a concept within the meaning of art. 4, paragraph 1, item 50 of Regulation (EC) no 575/2013.

44. "equity" is a concept within the meaning of art. 4, paragraph 1, item 118 of Regulation (EC) no 575/2013.

45. "operational risk" is a concept within the meaning of art. 4, paragraph 1, item 52 of Regulation (EC) no 575/2013.

46. "regulated market" is a concept within the meaning of art. 4, paragraph 1, item 92 of Regulation (EC) no 575/2013.

47. "Internal approaches" are the internal ratings based approach under art. 143, paragraph 1, of the internal models approach in art. 221, own estimates approach under art. 225, advanced measurement approaches under art. 312 (2), the method of internal models under art. 283 and 363 and the approach of internal assessment under art. 259, paragraph 3 of Regulation (EC) no 575/2013.

48. a ' consolidated ' is a concept within the meaning of art. 4, paragraph 1, item 47 of Regulation (EC) no 575/2013.

49. "securitisation position" is a concept within the meaning of art. 4, paragraph 1, item 62 of Regulation (EC) no 575/2013. "

2. In paragraph 2:

and the current text) became al. 1;

(b)) is hereby set up al. 2:

"(2) the powers of the NATIONAL BANK under art. 121, para. 1 be carried out separate and apart from the functions of the Bulgarian National Bank on the supervision of the banking system. "

3. In paragraph 4, after the words "(OB, L 331/120 of 17 December 2010)" the Union "and" shall be replaced by a comma, and add "and of Directive 2013/36/EC of the European Parliament and of the Council of 26 June 2013 on access to the pursuit of the business of credit institutions and on the prudential supervision of credit institutions and investment firms amending Directive 2002/87/EC and repealing directives 2006/48/EC and 2006/49/EC".

Transitional and final provisions

§ 79. The requirement for disclosure of all items of information referred to in art. 70, para. 6 shall apply from 1 January 2015, with the exception of the information referred to in items 1 – 3, which shall be made before 1 July 2014.

§ 80. (1) within 6 months from the entry into force of this law, the financial institutions entered in the register of BNB, which have carried out activities under art. 2, al. 2, item 8 and intend to provide one or more investment services and/or to carry out one or more investment activities under art. 5, al. 2 of the law on markets in financial instruments directive, submitted to the financial supervision Commission documents for obtaining a license for carrying out of the business of investment firms under the law on markets in financial instruments.

(2) financial institutions under art. 2, al. 2, item 8, entered in the register of BNB, which are made and who intend to carry out the exchange of currency in cash, shall bring their activities in accordance with the currency act within the time limit referred to in paragraph 1. 1.

(3) financial institutions which, on the date of entry into force of this law operate under art. 2, al. 2, item 10, do not register in the Bulgarian National Bank.

(4) within 6 months from the entry into force of this law all registered pending its entry into force financial institutions returned to the BNB issued their certificates of registration and re-register the BNB, if they meet the requirements of art. 3 (a), in the order specified by an Ordinance of the BNB.

(5) the Incumbent upon the entry into force of this law, the administrative procedures for the registration of financial institutions in the BULGARIAN NATIONAL BANK shall be reversed in the new order.

§ 81. In the commercial law (promulgated, SG. 48 of 1991; amend., no. 25 of 1992, no. 61 and 103 of 1993, 63/1994, no. 63 of 1995, no. 42, 59, 83, 86 and 104 of 1996, 58/100 and 124 of 1997, no. 21, 39, 52, and 70 of 1998 No. 33 , 42, 64, 81, 90, 103 and 114 in 1999, St. 84. Since the year 2000, PCs. 28, 61 and 96 in 2002, PCs. 19, 31 and 58 from 2003, PCs. 31, 39, 42, 43, 66, 103 and 105 of 2005, St. 38, 59, 80 and 105, 2006, issue. 59, 92 and 104 from 2007, PCs. 50, 67, 70, 100 and 108 of 2008, PCs. 12, 18, 32, 47 and 82 from 2009, PCs. 41 and 101 of 2010, PC. 14, 18 and 34 by 2011, issue. 53 and 60 of the 2012 issue. 15 and 20 by 2013.) in art. 655. 2, item 9, the words "14" are replaced by "14".


§ 82. In the social security code (promulgated, SG. 110; since 1999 decision No 5 of the Constitutional Court from 2000 – 55/2000; amend., no. 64 of 2000, issue 1, 35 and 41 of the 2001, issue 1, 10, 45, 74, 112, 119 and 120 of 2002, no. 8, 42, 67, 95, 112, and 114 from 2003. , PC. 12, 21, 38, 52, 53, 69, 70, 112 and 115 of 2004, PCs. 38, 39, 76, 102, 103, 104 and 105 of the 2005 St. 16, 30, 34, 56, 57, 59 and 68 by 2006; Corr, PCs. 76 of 2006; amend., SG. 80, 82, 95, 102 and 105, 2006, issue. 41, 52, 53, 64, 77, 97, 100, 109 and 113 of 2007, PC. 33, 43, 67, 69, 89, 102 and 109 from 2008, PCs. 23, 25, 35, 41, 42, 93, 95, 99 and 103 of 2009, PCs. 16, 19, 43, 49, 58, 59, 88, 97, 98 and 100 by 2010; Decision of the Constitutional Court No. 7 of 2011-PCs. 45 by 2011; amend., SG. 60, 77 and 100 by 2011, issue. 7, 21, 38, 40, 44, 58, 81, 89, 94 and 99 by 2012 PCs. 15, 20, 70, 98, 104, 106, 109 and 111 by 2013, PCs. 1 by 2014) in art. 123 a, para. 2, item 5 the words "14, 19 or 20 ' is replaced by ' 16, 23 or 24.

§ 83. In the law on the activities of collective investment schemes and of other collective investment undertakings (official SG. 77 by 2011; amend., SG. 21 of 2012, from 2013, 109) in art. 35, para. 1, item 5, the words "14, 19, 20 or 21 shall be replaced by ' 16, 23, 24 or 25."

§ 84. In the law on the supplementary supervision of financial conglomerates (promulgated, SG. 59 06; amend., SG. 52 of 2007 and 77/105 of 2011 No. 70 from 2013) make the following amendments and additions:

1. In art. 13, para. 8 the words "art. 79, para. 2 "are replaced by" article. 79.

2. § 1 of the additional provisions:

a) in paragraph 1 the words "art. 1, al. 2 "are replaced by" article. 2, al. 1 ";

(b) in point 19) (a) shall be replaced by the following:

"a) for persons from the banking sector – minimum required own funds, in accordance with the requirements of Regulation (EC) no 575/13 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (OJ L 176/1 of 27 June 2013) and of art. 39 of the law on credit institutions, for each of the individuals in this sector; ".

§ 85. Paragraph 43, item 4, § 45, 46 and 47, § 48, item 1, § 49, § 50 on art. 87 (b), para. 4 and 5, § 67, item 4 shall enter into force on the date on which the requirement of a fixed amount for coverage become applicable in accordance with the delegated Act, which the Commission shall adopt, in accordance with art. 460 of Regulation (EC) no 575/2013.

The law was adopted by the 42nd National Assembly on 11 March 2014 and is stamped with the official seal of the National Assembly.

President of the National Assembly: Mihail Mikov

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