The liabilities of the Bulgarian National Bank show how its financial resources were distributed and how it met its obligations. These figures reflect the strong level of public confidence in the bank and the wide use of its services.
The capital of the bank amounted to 10,000,000 francs, which formed the financial foundation of the institution. In addition to this, the bank held a reserve capital of 4,393,000 francs and a reserve fund of 996,400 francs, created to protect the bank against possible risks.
One of the largest items was banknotes in circulation, which reached 40,217,400 francs. This figure shows the importance of the bank as the main issuer of paper money in the country. The value of mortgage preference stock stood at 16,904,200 francs, while term deposits reached 59,725,600 francs, proving that many individuals and institutions trusted the bank with long-term savings.
The bank also held unlimited deposits, deposits on security without interest, and current accounts, both with and without interest. Together, these deposits formed a major part of the bank’s liabilities. Funds belonging to the State Treasury, as well as foreign bills for collection and certificates against bills and bonds, also appeared on the balance sheet.
At the end of the accounting period, the bank recorded net profits of 2,528,300 francs. The total liabilities amounted to 202,418,200 francs, exactly matching the total assets and proving the correctness of the balance sheet.
Organisation and Administration
The central headquarters of the Bulgarian National Bank is located in Sofia, the capital of Bulgaria. From this center, the bank manages all its national operations.
The bank operates branches in Roustchouk, Varna, Plovdiv, Tirnova, and Bourgas. In addition, it maintains agencies in Viddin, Plevna, Sistova, and Sliven. The branches of the Bulgarian Agricultural Bank in district centers also act as correspondents of the National Bank.
The overall administration of the bank is carried out by an Administrative Council, appointed by the Prince. This council consists of a Governor and four administrators. Each branch is managed by a director, who is also appointed by the Prince.
Main Transactions of the Bank
The Bulgarian National Bank performs a wide range of financial operations. It accepts deposits from public institutions and private individuals, either for a fixed period or payable on demand, with or without interest.
The bank grants loans secured by mortgages, both to private persons and to government departments and communes. It also provides loans against bills, goods, or bills of lading, and allows uncovered current accounts.
In addition, the bank discounts commercial bills and Treasury bonds, collects commercial bills, and issues letters of credit, which it pays upon presentation. It buys and sells securities for clients and accepts different types of securities for safe keeping.
Finally, the bank receives State revenues, makes government payments within these revenues, and provides commercial information about merchants. The bank is allowed to issue banknotes up to three times its capital and reserve fund, provided that at least one-third of the value of the notes in circulation is held in bullion in its vaults Private Tour Istanbul.