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Bulgarian bank failure puts region’s lenders back in spotlight

The nationalisation of the troubled Bulgarian bank, Corporate Commercial Bank, over the weekend has put attention back onto Emerging Europe’s fragile financial sector. Given the rise in non-performing loans, both in Bulgaria and in the rest of the region, further problems are likely to flare up from time to time over the coming years. However, whereas in 2008-09 or 2011 this might have led to contagion to the rest of the region, this now seems unlikely.

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