Banks make serious profits but approve few new loans

Bulgaria's banking system is still registering growth, which, however, is cooling down due to slower rate of financing, the national bank’s data for the third quarter of 2008 show. Commercial banks in Bulgaria have recorded earnings of BGN 1.1 billion for the 9 months of 2008, 28% more than the same period a year earlier. Nevertheless, statistics indicate a decline in the number of loans, a trend which specialists assume will continue considering rising interest rates and credit costs plus tightened criteria for receiving financing.