Premium Contributions 
The premium contributions payable by banks to the Bulgarian Deposit Insurance Fund (BDIF) are calculated in accordance with the requirements of Ordinance No. 30 of the Bulgarian National Bank (BNB) of 11 September 2024 on the Calculation of the Amount of Premium Contributions Dueby Banks Under the Law on Bank Deposit Guarantee, issued by the BNB (Ordinance No. 30).For the purposes of determining the contributions, banks provide information to the BDIF in compliance with the requirements of the Guidelines for the provision of information pursuant to Article 23 of Ordinance No. 30 of the Bulgarian National Bank of 21 January 2016 on the calculation and collection of premium contributions dueby banks under the Law on Bank Deposit Guarantee, issued by the BNB.
1. Determination of the total amount of annual contributions due by banks or annual contributions at a reduced rate.
Pursuant to Article 11(1) and Article 12(2), item 4 of Ordinance No. 30 of the BNB, and in accordance with the requirements of the EBA Guidelines on methods for calculating contributions to deposit guarantee schemes, the Management Board of the BDIF determines the total amount of annual contributions dueby banks or annual contributions at a reduced rate, taking into account “the stage of the business cycle and the potential procyclical impact of contributions, as well as the individual risk profiles of banks and the overall risk to the banking system”.
The purpose of this provision is, on the one hand, to protect the banking system against the accumulation of excessively high premium contributions during downward phases of the business cycle, and, on the other hand, to enable more accelerated capitalisation of the deposit guarantee scheme in a pro-inflationary environment.
The BDIF carries out an assessment and, where necessary, applies an adjustment to the total amount of annual premium contributions dueby banks or annual premium contributions at a reduced rate, taking into account the stage of the business cycle and the potential procyclical impact of contributions.
For the purposes of determining the stage of the business cycle, the BDIF maintains a methodology for assessing the potential GDP of the Republic of Bulgaria, based on a CES production function [1]. The parameters of the production function are estimated using available statistical data from the National Statistical Institute for the period after 2006, as well as relevant econometric assumptions.
The estimated potential GDP is compared with developments in actual GDP, current and historical average profits realised by the banking sector/industry, as well as other factors that may have an impact on the condition of the banking sector/industry in the country, including the probability of a material deterioration [2] in the Aggregated Risk Indices [3] of banks on an individual basis in the short term. Within this framework, the total amount of annual premium contributions dueby banks or annual premium contributions at a reduced rate is determined.
2. Determination of the annual contribution due by each bank or the annual contribution at a reduced rate (individual contributions)
For the purposes of determining the annual premium contribution payable by each bank or the annual premium contribution at a reduced rate, the Management Board of the BDIF adopts a Methodology for determining interval boundaries for the purposes of Article 15(2) of Ordinance No. 30 (adopted by the Management Board of the BDIF in 2019 and amended in 2022, 2024 and 2025).
In addition, the Management Board of the BDIF adopts, by decision, the interval boundaries for individual risk assessments pursuant to Article 15(2), as well as the boundariespursuant to Article 17(5) of Ordinance No. 30. These thresholds are reviewed periodically every two years or as necessary and are postedon the BDIF's website.
Methodology for determining threshold values for the purposes of Article 15(2) of Ordinance No. 30 on the calculation of the amount of premium contributions payable by banks under the Bank Deposit Guarantee Act, adopted by the Management Board of the Bulgarian Deposit Insurance Fund on 11 April 2025.”