Revenues from banking fees and commissions last year rose by 17.2 per cent to 63.8 million leva, according to a report from the Bulgarian National Bank (BNB). During the same period, spending on fees and commissions totalled 6.5 million leva, which represents a year-on-year increase of 5.5 per cent.

Fees and commissions form a third of banking revenues. The second-largest revenue source is interest rates.

Banking fees and commissions are not only the most lucrative revenue source for lenders but also an instrument for boosting market share, experts commented, as quoted by Dnevnik daily.

Banking packages on various lending products increasingly offer a waiver for various fees or their size is reduced for a certain promotion period. Banks resorted to this marketing approach after interest rates on loans plunged.

Banks no longer set hidden fees and commissions because they are already itemised in the annual expenditure percentage, as defined in the Consumer Loan Act.

According to banking experts, fees and commissions are relatively stable and not subject to fluctuations or material changes. Banks tend to cut fees and commissions whenever a rival starts a special promotion.