Bulgarian central bank calls for jail time after bank runs require emergency liquidity

national-bank-of-bulgariaThe Bulgarian Central Bank

The Bulgarian National Bank today called on the country’s authorities to update the penal code to imprison anyone found guilty of spreading malicious rumours about the country’s financial system, following another weekend of turmoil in the country’s banks.

The Bulgarian government stepped in over the weekend to shore up the banking system after a second bank was subject to a run on deposits on Friday. The central bank today said the liquidity provision had helped overcome the problems in the system, which is now “functioning normally”.

After a run on Corporate Commercial Bank (CCB) on June 20, another bank – First Investment Bank – was subject to a similar run last Friday precipitated by “an epidemic of rumours and malicious public statements”, carried out “to destabilise the country” through an “organised attack on Bulgarian banks without any reason”, according to the Bulgarian National Bank (BNB)

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