BANKING LOANS AND HOUSEHOLD DEPOSITS IN THE REPUBLIC OF BULGARIA UNDER ECONOMIC CRISIS: DYNAMICS AND STRUCTURAL TRANSFORMATIONS

Abstract

Bank loans and deposits differ not only in quantitative characteristics but also in the content. Their dynamics is determined by contradictory internal structural trends. The work focuses on the loans and deposits of individuals and households in the banking system of the Republic of Bulgaria. The subject of the study is the dynamics and structure of loans and deposits. The main purpose is to study how the changes in internal structural components of the bank loans and deposits affect the overall dynamics under unfavourable economic conditions in the country. The study uses traditional scientific methods: structural, comparative, dynamic and ratio analyses. Conclusions are based on the information of the Bulgarian National Bank on the state of the banking sector in the country. The analysis of real empirical data taken from the Bulgarian banking practices for 2005–2013 years made it possible to define internal structural transformations as follows: a) loans in terms of their purpose, form, currency, maturity, size and quality; b) deposits depending on their shape, currency, maturity and size. The results can be used to identify potential opportunities to increase the activity of banks in Bulgaria as one of the factors contributing to the quick recovery from the economic crisis.