The European Central Bank will carry out a comprehensive assessment of six Bulgarian banks as part of the Eastern European nation's bid to join the EU's banking union.
UniCredit SpA unit UniCredit Bulbank AD, OTP Bank Nyrt. unit DSK Bank, KBC Group NV unit United Bulgarian Bank AD, First Investment Bank AD, Central Cooperative Bank AD and Investbank AD will be part of the assessment.
The exercise will comprise an asset quality review and a stress test, both of which will be based on methods the ECB's banking supervision applies in its regular assessments of banks recently classified as significant or may become significant.
The ECB will launch the assessment in November, with the cut-off date for the exercise to be Dec. 31. Results are expected to be published in July 2019.
Meanwhile, the ECB noted that its assessment of Bulgaria's bid will include a review of national legislation, and will take into account the practical implementation of such laws.
Eurozone finance ministers in July backed Bulgaria's commitment to join the Exchange Rate Mechanism, a move that would ultimately lead to the Balkan state joining the single-currency area.
