PHENOMENON OF FRAUD? LESSONS LEARNED FROM TURMOIL IN BULGARIAN BANKS IN 2014
PHENOMENON OF FRAUD? LESSONS LEARNED FROM TURMOIL IN BULGARIAN BANKS IN 2014
Abstract
In 2014 Bulgarian bank sector, often cited as one of the most stable and
prominent areas of economic development in the country, witnessed a series of events
that lead for closure of one of the biggest private banks (ranked #4 based on the value of
its assets) and to serious tensions for another private bank (ranked #3 based on the value
of its assets). In this paper we study the different paths of development that have been
followed by Bulgarian banks in an attempt to explain what caused these events and why
they affected exactly these financial institutions. We have examined the importance of
taking into account individual characteristics of different financial institustions when
assessing their risk exposure and stability.
References
Harvard Business Review, May, 3-11.
Coppola, F. (2014, July 11). Bulgaria's corpbank: A Tangled Web Of Fraud. Forbes.
Retrieved from http://www.forbes.com/sites/francescoppola/2014/11/07/bulgariascorpbank-a-tangled-web-of-fraud/
Costeiros, E. T. (2014). Somcode. Retrieved from somcode - Self-Organizing Map
Code Project: http://somcode.cpatc.embrapa.br/
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
By submitting a paper for publishing the authors hereby comply with the following provisions: 1. The authors retain the copyrights and only give the journal the right for first publication while licensing the work under Creative Commons Attribution License, which grants permissions to others to share the contribution citing this journal as first publication of the text. 2. The authors may enter separate, additional contractual relations for non-exclusive distribution of the published version of the work in this journal (e.g. to upload it in an institutional depository, or to be published in a book), given that they cite the first publication in this journal. 3. The authors are allowed and are encouraged to publish their works online (e.g. to upload it in an institutional depository, personal websites, social networks, etc.) before, during, and after the submission of the paper here, because this may lead to productive exchange, as well as earlier and larger referencing of the published works (see The Effect of Open Access).
