TY - JOUR TT - EFFECTS OF THE BULGARIAN BANKING SECTOR JOINING THE EUROPEAN BANKING UNION AU - Ivanova, Vania AU - Sotirova, Ekaterina PY - 2017 DA - August DO - 10.18769/ijasos.336546 JF - IJASOS- International E-journal of Advances in Social Sciences JO - IJASOS PB - OCERINT International Organization Center of Academic Research WT - DergiPark SN - 2411-183X SP - 349 EP - 357 VL - 3 IS - 8 KW - European Banking Union KW - bank supervision KW - banking system stability KW - financial integration N2 - The development of the Bulgarian banking system is acomplex and dynamic process that is driven by the effect of both internal andexternal factors. The country’s membership in the EU favours inflow of foreigncapital into the system in the form of the purchases of most Bulgariancommercial banks. The domination of European capital forms a number ofpositives but also possibilities for distress by line of ownership.As a Member State of the EU with derogation, Bulgariadoes not participate in the European Monetary Union. However, apart from thechoice of the euro as a nominal anchor of the Currency Board, it can also beobserved that there is tighter integration with the European financial systemand, over the last few years, government declarations expressing the desire tobecome a full member of the Eurozone. That leads to commitments thatdemonstrate the viewpoint that it is possible to achieve significantimprovements of the main dimensions of the system’s functionality while alsoincreasing its credibility in the eyes of Bulgarian consumers of bank servicesand European investors.In 2014, the Bulgarian bank system faced a seriouschallenge – the crisis surrounds Corporate Commercial Bank (CCB), one of itsbiggest commercial banks. The goalof this article is to examine the methods, effectiveness and costs ofstabilizing the system. At the same time, the authors also examine theapproaches that would have been applicable to the same situation had thecountry been a member of the European Banking Union and had CCB been under theSingle Supervisory Mechanism. The task, based on the above-mentioned case, toevaluate the positives and potential negatives of Bulgaria joining the BankingUnion and to support membership in the European Banking Union. That wouldcontribute towards additional stabilization of the Bulgarian banking sector andmore effective resolution of capital adequacy issues, liquidity, solvency andsecurity. CR - Biolcheva,P., Aktualno sastoyanie na targovskite banki v Balgaria, Sb. 25 godini katedra “Natzionalna I regionalna sigurnost”, Izdatelski complex na UNSS, 2016. BNB, Annual Reports. BNB, Naredba 11 za upravlenieto I nadzora varhu likvidnostta na bankite. BNB, Naredba 38 za kapitalovata adekvatnost na bankite. Reglament (ES) 575 na Evropeiskiya parlament I na saveta ot 26.06.2013 otnosno prudentzialnite izskvaniya za kreditnite institutzii I investitzionnite posrednitzi Ferran, E., et Babis, V., The European Single Supervisory Mechanism, University of Cambridge Faculty of Law Legal Studies Research Paper Series, 2013. Gortsos, C. VI., «The “Single Supervisory Mechanism”: a major building‑block towards a European Banking Union (the full Europeanisation of the “bank safety net”)», 2 confеrence annuelle sur la recherche de l’IADI, 2013. Huertas, T., et Nieto, M. J., «Banking union and bank resolution: How should the two meet?», VOX, 2012. Kern, A., Bank resolution and recovery in the EU: enhancing banking union?, ERA (Acadйmie de droit europйen), 2013. Lannoo, K., Banking Union in three steps, Centre d’еtudes de la politique europеenne, Commentaire du CEPS, 2012. Lane, P (2015), “Macro-financial stability under EMU”, CEPR Discussion Paper 10776. Martin, P and T Philippon (2014), “Inspecting the mechanism: Leverage and the great recession in the Eurozone”, Working Paper NYU. Véron, N and G Wolf (2015), “Capital markets union: a vision for the long term”, Bruegel Policy Contribution, April UR - https://doi.org/10.18769/ijasos.336546 L1 - https://dergipark.org.tr/en/download/article-file/338419 ER -