Bulgarian bank run puts focus on deposit reliance

摘要

A bank run in Bulgaria has forced the nationalisation of one of the country's largest banks, in a reminder of the vulnerability of banks to retail clients pulling out their cash and a warning to regulators that have pushed the industry to become less reliant on wholesale funding. Trouble began two weeks ago when bank account holders began receiving fraudulent emails and text messages telling them that corporate commercial bank was going broke, advising them to remove their money from the bank as soon as possible. A rush of withdrawals promptly forced the central bank to assume control. But before the dust could settle, a similar attack was made on first investment bank, prompting more withdrawals. The Bulgarian authorities were forced to step in and approve a €1.7bn credit line to shore up the bank's balance sheet, and to go to great lengths to reassure the public that the banking system remained sound.