Among the fears related to Bulgaria’s accession to the euro area, the main concerns are linked with inflation and financial sector instability that can spread across borders. While it is difficult to give a straightforward answer about inflation due to various influencing factors, there are clear indicators for the financial sector that show its resilience....

Non-performing loans (NPLs) in Europe remain at a very low level, even with a slight decrease in some segments, despite the growth in lending, the latest Risk Dashboard report of the European Banking Authority (EBA) shows. The data are as at the end of the third quarter of 2023 and show no change of the...