The Bulgarian Deposit Insurance Fund (BDIF) is the legal authority responsible for operating the domestic deposit guarantee scheme in Bulgaria. This scheme is designed to protect account holders in the event of a bank or credit institution failure. The main objective of the deposit guarantee scheme is to maintain stability and confidence in the financial system by assuring depositors that their funds are secure, up to a predefined coverage limit. Deposit insurance serves as a financial safety net for depositors, mitigating the risk of losing their hard-earned money due to insolvency or bank failures.
The need for deposit insurance arises from the potential impact of bank failures on individuals and the overall economy. When banks fail, account holders may lose their savings, which can lead to a loss of confidence in the banking system and trigger bank runs. Deposit insurance, like the one provided by the BDIF, safeguards depositors against such losses and helps maintain public confidence in the financial system. By providing this safety net, the deposit guarantee scheme contributes to the stability and resilience of the financial sector and reduces the likelihood of bank runs and financial crises.
The organizational structure of the Bulgarian Deposit Insurance Fund includes a Management Board and a Supervisory Board. The Management Board is responsible for the day-to-day operations of the BDIF, while the Supervisory Board oversees the activities of the Management Board and ensures compliance with legal requirements. The BDIF is a member of the European Forum of Deposit Insurers (EFDI), which aims to foster cooperation and exchange of knowledge among deposit insurers in Europe.
The contact information for the DGS Administration in Bulgaria is as follows:
Bulgarian Deposit Insurance Fund
Address: 27, Vladayska Reka St.,
Sofia 1606, Bulgaria
Phone: +359 2 953 12 13
Fax: +359 2 953 10 39
E-mail: [email protected]