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BALANCE SHEET ITEMS OF THE BULGARIAN NATIONAL BANK UNDER THE CONDITIONS
OF EU MEMBERSHIP
The research area of the survey is the balance sheet positions of the BNB, and the subject - the convergent aspects of the BNB balance sheet items for the period 01.2006 to 03.2018. The purpose of the survey is to identify the specifics, under the currency board conditions, as well as the dynamics, trend and risk parameters of the BNB balance ...
The research area of the survey is the balance sheet positions of the BNB, and the subject - the convergent aspects of the BNB balance sheet items for the period 01.2006 to 03.2018. The purpose of the survey is to identify the specifics, under the currency board conditions, as well as the dynamics, trend and risk parameters of the BNB balance sheet items, focusing on the currency risk of USD-denominated balance sheet positions and the correlation of these positions with the GDP of Bulgaria. A special focus is placed on currency risk in USD-denominated balance sheet items. The thesis tests the existence of a direct link between dynamics in the BNB balance sheet positions and the growth of GDP, taking into account force majeure factors. The paper has the following tasks: first, study the philosophy and the regulatory framework for the structure of the balance sheet items of the BNB; study trends and dynamics of the balance sheet positions of the BNB for the period 2006-2018; thirdly, the study of the currency risk system and its effect on the balance sheet positions of the BNB; the study of the correlation relations and the influence of the passives on the active positions in the balance sheet of the BNB. Analytical results confirm leadership "risk" status for the item "Cash and cash equivalents ..." (by 61.7% of the variation) in the asset and under "Liabilities to other depositors" the liability (61.7% variation). The final correlation analysis of the relationship between dynamics in capital and liabilities positions and their impact on asset positions places a leading role as a factor of position „Total Liabilities“. The impact of its dynamics is the strongest on „Investments in securities” with a positive correlation from +0.76 and determination coefficient equal to 57.9%.
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INFLUENCE OF THE LEGAL FRAMEWORK
IN DETERMINING THE REQUIRED AMOUNT
OF TECHNICAL RESERVES FOR MOTOR THIRD PARTY LIABILITY INSURANCE
The problems arising from the recent global financial and economic crisis have led to a rethinking of many texts both in local laws and at Community level. New rules and regulations have gradually been introduced concerning all economic agents operating within the European Union. The introduction of these regulations in the field of insurance is ...
The problems arising from the recent global financial and economic crisis have led to a rethinking of many texts both in local laws and at Community level. New rules and regulations have gradually been introduced concerning all economic agents operating within the European Union. The introduction of these regulations in the field of insurance is associated with the adoption of Solvency II Directive. The implementation of the Directive in the Bulgarian legislation was realized with the adoption of a new Insurance Code, effective as of 1 January 2016 and Financial Supervision Commission’s Ordinance No 53 of 19 January 2017, which determines the order and method of allocation of technical reserves by the insurers working on the Bulgarian insurance market.
The study assesses the impact of the regulatory framework on the technical reserves of insurance companies offering Motor Third Party Liability Insurance. It outlines the problems that insurers have to deal with and the effect that the methods, used for calculating the required amount of technical reserves, have on the insurance company’s balance sheet.
The study has shown that there are differences in the methodologies described in the Solvency II Directive and Ordinance No 53 of Financial Supervision Commission. They concern the valuation of insurance companies’ assets and liabilities, the recognition of cash flows and the treatment of insurance income and expenses. Therefore, legislative changes are needed to synchronize the requirements of Bulgarian legislation with the European Directive Solvency II, with a view to optimizing the amount of technical reserves for Motor Third Party Liability Insurance.
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OPPORTUNITIES FOR DIRECT INVESTMENT
IN THE INFORMATION ECONOMY
As early as the second half of the twentieth century, it was already clear to all the scholars and researchers of the society and its inherent economy that the industrial economy was on the wane, and its place was gradually occupied by a new, post-industrial (information) economy.
The aim of the present paper is to highlight some aspects of the ...
As early as the second half of the twentieth century, it was already clear to all the scholars and researchers of the society and its inherent economy that the industrial economy was on the wane, and its place was gradually occupied by a new, post-industrial (information) economy.
The aim of the present paper is to highlight some aspects of the nature and characteristics of the information economy as à necessary intrinsic part of the information society and to identify the strategic and particular conditions for business investment in this new environment.
The problems to be solved in relation to the stated objective of the research are: to characterize the emerging information economy and its peculiarities; to outline the branch orientation of the foreign direct investments in the information economy; to highlight the motives that have the most significant impact on investment decisions in the post-industrial economy; to provide guidelines for adapting economic policy in line with the new realities.
The research thesis is that: the information economy changes the conditions for conducting business and also the behavior of enterprises, particularly transnational corporations, which necessitates the adaptation of the economic policy to the new realities.
The main results of the research can be summarized as follows: The theoretical foundations of the information society and economy have been clarified; The motives for direct foreign investment have been analyzed and the factors that are of major significance for FDI in the new conditions have been derived. On this basis, the relationship between the information economy and the opportunities for direct investment has been assessed; An analysis of FDI in the service sector has been made, with special attention paid to greenfield investments and mergers and acquisitions; Recommendations have been made to the economic policy so that it can be adapted to the new business and economic environment.
