Dimov&Tashev Law Firm

July 13, 2010 | Proposed changes in the Credit Institutions Act

The draft bill for amendments of the Credit Institutions Act, as proposed by the Council of Ministers, is aimed at increasing efficiency of supervision, as well as improving the institutional cooperation between the competent bodies in the separate member states exercising banking supervision. Further, a particular emphasis would be placed on the banking institutions operating in several member states, as well as bank groups and financial holdings including companies having seats in different member states.

 

The draft bill also envisages introduction of changes aimed at improving legal framework relating to protection of bank clients' rights by introducing express obligation for the bank to notify the depositor, respectively - the borrower, of any change in applicable interests, respectively - change in the general costs (with respect to the credit facilities) affecting client's interest.