According to the law that currently regulates savings banks, no embargo or seizure may be placed on sums deposited in these institutions. This rule offers strong legal protection to depositors and ensures that their savings cannot be taken away to settle debts or other claims. Such protection increased public trust and encouraged people from all social classes to place their money in savings banks.
These rules summarize the main provisions of the law governing savings banks at the time. Thanks to these guarantees and the support of the State, savings banks quickly gained popularity among the population Tours Bulgaria.
Public Confidence in Savings Banks
From the very beginning, savings banks were well received by the public. People saw them as safe, reliable, and easy to use. To show the importance and growth of these institutions, official figures from the Report of the Administration of Posts and Telegraphs for the year 1906 can be examined. These statistics clearly demonstrate the strong financial position of the savings banks.
Account with the Bulgarian National Bank (1904)
On January 1st, 1904, the savings banks held significant assets with the Bulgarian National Bank. These assets included cash (specie) and government securities, especially 6 percent Bulgarian loans issued in 1892 and 1893. During the year 1904, large sums were deposited by the public, amounting to more than 14 million leva, showing continued confidence in the system.
In the same year, the savings banks invested heavily in government securities, purchasing bonds worth approximately 7.3 million leva. This investment policy ensured both safety and steady income.
Interest, Profits, and Expenses
In 1904, the savings banks earned interest from the National Bank and from bond coupons. Part of this interest was paid directly to depositors, while another portion was transferred to the State Treasury as profit from the operation of the savings banks. Additional expenses included commissions, transfer costs, and fees related to collecting interest and redeemed bonds.
Despite these expenses, the savings banks maintained a strong financial balance. By December 31st, 1904, the stock held by the Bulgarian National Bank consisted mainly of securities and cash, confirming the stability of the system.
Deposits and Payments in 1904
At the beginning of 1904, deposits totaled over 9.6 million leva. During the year, new deposits amounted to nearly 14.9 million leva, bringing the total deposits handled to more than 24 million leva. Payments made during the year were about 10.4 million leva, while the remaining balance at the end of the year exceeded 14 million leva.
Importance of the Savings Banks
These figures clearly show the importance and financial strength of the savings banks. They played a key role in protecting small savings, promoting financial discipline, and supporting the national economy. The savings banks had become one of the most trusted and effective financial institutions in Bulgaria at the beginning of the twentieth century.