Research Article
Assessing the Resilience of the Banking System in the Republic of Bulgaria Using Mathematical Models
@INPROCEEDINGS{10.1007/978-3-031-44668-9_25, author={Metodi Traykov and Miglena Trencheva}, title={Assessing the Resilience of the Banking System in the Republic of Bulgaria Using Mathematical Models}, proceedings={Computer Science and Education in Computer Science. 19th EAI International Conference, CSECS 2023, Boston, MA, USA, June 28--29, 2023, Proceedings}, proceedings_a={CSECS}, year={2023}, month={10}, keywords={Banking System Mathematical Models resilience Stability}, doi={10.1007/978-3-031-44668-9_25} }- Metodi Traykov
Miglena Trencheva
Year: 2023
Assessing the Resilience of the Banking System in the Republic of Bulgaria Using Mathematical Models
CSECS
Springer
DOI: 10.1007/978-3-031-44668-9_25
Abstract
This paper provides an in-depth evaluation of the resilience and stability of the banking system in the Republic of Bulgaria, utilizing innovative mathematical models for analysis. The study focuses on the period from 2016 to 2022, a time characterized by significant economic and financial fluctuations worldwide.
The research presents a rigorous assessment of the Bulgarian banking system’s stability, emphasizing the application of mathematical models including stress testing, factor analysis, and stochastic modeling. These models are employed to evaluate the systemic risk factors and determine the banking system’s resilience under various stress scenarios.
Our findings reveal that the Bulgarian banking system demonstrates notable resilience despite the challenging economic conditions. We attribute this robustness primarily to effective regulatory measures, responsible banking practices, and the system’s inherent structural strengths.
Nonetheless, the study also identifies potential vulnerabilities and provides strategic recommendations for further bolstering the system’s resilience. This research has significant implications for banking regulators, financial institutions, and policymakers, contributing to a more comprehensive understanding of the banking system’s resilience, thereby informing future regulatory and policy decisions.
