Banking

This prevailing uncertainty makes it difficult for banks in Bulgaria to effectively plan their operations and long-term activities. Despite the ambiguity, one reality is clear: there will be intensified pressure on banks to raise additional capital to support their business activities. Consequently, institutions will likely need to make difficult strategic decisions to exit, re-price, or restructure specific business lines to maintain viability and profitability.

In addition to regulatory shifts, the financial crisis and moves toward accounting convergence—specifically with U.S. GAAP—have triggered a new series of IFRS requirements. The introduction of IFRS 9, 10, 11, 12, and 13 will fundamentally reshape financial statements and potentially alter the earning profile of most financial institutions. This demands a rigorous assessment of the impact on both business models and capital requirements. Crucially, this is not merely an accounting change; it is a holistic shift that will affect people, processes, systems, and the entire business structure.

Our Banking professionals possess the deep experience, technical skills, industry focus, and global resources required to help clients address and overcome these business challenges. By combining a strong local presence with access to a vast global network of banking experts, KPMG’s Banking practice in Bulgaria is uniquely positioned to help our clients successfully navigate through these challenging times.