December 27 (SeeNews) - The deadline for completion of the Asset Quality Review (AQR) of Bulgaria's pension funds and insurance sector has been extended to January 23, 2017, the country's financial regulator announced on Tuesday.
"In connection with the review at the group level, which include the results of related foreign-based insurance companies, the Steering Committee decided that it is appropriate to extend the deadline," the Financial Supervision Commission (FSC) said in a statement.
The AQR results will be released by February 3 alongside with the results of the stress test of the insurance sector.
In March, FSC extended the deadline for the final results of the stress test to December 1 from August 15 due to publishing new invitations to external reviewers.
In May 2015, the European Commission recommended to Bulgaria to review and strengthen the supervision of its banking and non-banking financial sector and improve corporate governance in financial intermediaries.
The recommendation came after in mid-2014, Bulgaria's then third- and fourth-biggest banks were hit by runs on deposits. While First Investment Bank (FIBank) was rescued by the government, Corporate Commercial Bank (Corpbank) collapsed, triggering mounting distrust in the banking system and the central bank's regulatory practices.
In August, the central bank said that the AQR and stress tests of the banking sector showed that the capital adequacy of each bank was above the minimum regulatory requirements but recommended capital increases for two lenders, FIBank and Investbank.