Bulgaria banks strong, well capitalised – central bank

Bulgaria's banking system is strong and well capitalised, central bank head Ivan Iskrov said on Wednesday, seeking to ease concerns about the Balkan country's exposure to Greece.
Greek banks account for 28% of assets in Bulgaria's banking system and about a sixth in both Romania and Serbia.
"There are no weak banks in our banking system. The banks are well capitalised, with high liquidity, and people and the business should not be worried from that point of view," Iskrov told reporters.
Analysts say governments and central banks in southeast Europe have the resources to cover the gap if Greek parent banks start reducing their credit lines.
The largest Greek banks in the region are National Bank of Greece, EFG Eurobank, Piraeus Bank, Alpha Bank and Emporiki Bank .
"Deposits keep growing which is important for us. It is an indicator about the trust in the system," Iskrov said. "Although (non-serviced loans) are still rising … the banking system is very well-capitalised and has a very high level of the provisions."
While parent banks could pull funds from Bulgarian, Romanian and Serbian units via financial market operations, tight national banking regulations would make it difficult to withdraw significant amounts.
Bulgaria, Romania and Serbia, all small economies, would suffer from any Greek default as it would probably require bailouts or nationalisation of Greek parent banks and their local units.