Bulgarian C-Bank Relaxes Reserves Requirements To Liven up Money Market

So far, commercial banks maintained minimum required reserves solely on their settlement accounts with the central bank.

The new regulation, which amends the central bank's mandatory minimum reserves requirements, will tame the fluctuations on the interbank money market and will bolster the banks’ activity on the credit market, BNB said in a statement.

The central bank will also ease the access of commercial banks to their reserves held with it, BNB said but did not elaborate. Commercial banks in Bulgaria hold 12% of their deposits as minimum required reserves with the central bank.

Bulgarian government and BNB officials have said that the country's banking system is stable and is not affected directly by the global financial turmoil.