The proposal to transition switch from proportional to risk-weighted premium installments payable to Bulgaria's Deposit Insurance Fund (DIF) has met with the provisional approval of the local lenders, Dnevnik learned from a survey among bankers.

However, there are some banks that have mixed feelings and are not convinced that the switch is necessary.

The proposal, due to be submitted for review by the Association of Bulgarian Banks, was drawn up by the DIF using both qualitative and quantitative criteria.

The quantitative criteria are capital adequacy, return on capital, return on assets, efficiency coefficient, asset quality indicator and liquidity indicator.

The qualitative criteria are the supervisory rating assigned by the Bulgarian National Bank and a grade assigned by an international rating agency.

At the moment, each bank remits to the DIF an annual premium equal to 0.5 per cent of the total amount of the deposit base for the preceding year, determined on an average daily basis.

The project may face resistance in some quarters of the industry due to the expected additional costs for the banks that will pay higher premiums.

Read the full story on Dnevnik.bg