Opinion of the European Central Bank of 3 August 2010 on certain competences of the Governing Council of Българска народна банка (Bulgarian National Bank) (CON/2010/61)
Date: 2010-08-03
Institutions: European Central Bank
Subjects: Bulgaria, central bank, competence of the institution, electronic money, national law, payment system

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 3 August 2010 

on certain competences of the Governing Council of Българска народна банка (Bulgarian 

National Bank) 

(CON/2010/61) 

Introduction and legal basis 

On 7 July 2010 the European Central Bank (ECB) received a request from the Governor of Българска 

народна  банка  (Bulgarian  National  Bank)  (BNB)  for  an  opinion  on  a  draft  law  amending  the  Law  on 
payment services and payment systems1, the Law on the Bulgarian National Bank (hereinafter the ‘Law 
on BNB’)2 and other national legal acts3 (hereinafter the ‘draft law’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union and the third indent of Article 2(1) of Council Decision 98/415/EC of 

29 June  1998  on  the  consultation  of  the  European  Central  Bank  by  national  authorities  regarding  draft 
legislative  provisions4,  as  the  draft  law  relates  to  BNB.  In  accordance  with  the  first  sentence  of 

Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted 

this opinion. 

1. 

Purpose of the draft law 

The  main  purpose  of  the  draft  law  is  to  transpose  Directives  2009/44/EC5  and  2009/110/EC6  into 

Bulgarian law, and to bring relevant national legislation in line with these amendments. As a result, the 

draft law also adapts, through its transitional and final provisions, Articles of the Law on BNB related to 
the  competences  of  BNB’s  Governing  Council7.  The  need  for  such  an  adaptation  evolves  from  the 

exclusion  of  electronic  money  institutions  from  the  scope  of  the  credit  institution  definition  under 

1 
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3 
4 
5 

6 

7 

Published in Darjaven vestnik No 23, 27.3.2009. 
Published in Darjaven vestnik No 46, 10.6.1997. 
These include the Law on credit institutions, published in Darjaven vestnik No 59, 21.7.2006. 
OJ L 189, 3.7.1998, p. 42. 
Directive 2009/44/EC of the European Parliament and of the Council of 6 May 2009 amending Directive 98/26/EC on 
settlement  finality  in  payment  and  securities  settlement  systems  and  Directive  2002/47/EC  on  financial  collateral 
arrangements as regards linked systems and credit claims (OJ L 146, 10.6.2009, p. 37). 
Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit 
and  prudential  supervision  of  the  business  of  electronic  money  institutions  amending  Directives  2005/60/EC  and 
2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7). 
See § 3. of the Transitional and Final Provisions of the draft law. 

 
 
 
 
                                                 
Directive 2009/110/EC8 and from the subsequent implementation of Directive 2009/110/EC into national 
law9.  Therefore,  the  draft  law  adjusts  the  competences  of  BNB’s  Governing  Council  in  relation  to  the 

legal regime  under which it grants, refuses or revokes licenses for electronic  money institutions. Under 

the  draft  law,  the  license  procedure  and  terms  under  the  Law  on  credit  institutions  no  longer  apply  to 
electronic money institutions10. In addition, since electronic money institutions are no longer defined as 

credit  institutions,  the  draft  law  removes  them  from  the  list  of  types  of  credit  institutions  that  BNB’s 

Governing  Council  may  place  under  special  supervision  as  a  remedy  measure  for  credit  institutions 
pursuant to the Law on credit institutions11. 

2. 

General observation 

Amendments to the Law on BNB 

2.1  The ECB understands the rationale of § 3 of the draft law. While welcoming it, the ECB considers 

that it would be beneficial for reasons of clarity and legal certainty if proposed Article 16(15) of the 

Law  on  BNB  lists  the  full  range  of  institutions  for  which  the  BNB’s  Governing  Council  is 

competent  to  grant,  refuse  or  revoke  licenses,  including  for  example  payment  institutions  and 

financial institutions, which are subject to a licensing regime. 

2.2  The ECB also notes that the deletion of the words ‘electronic money institutions’ in Article16(16) 

of the Law on BNB may be a source of uncertainty in relation to identifying the relevant BNB body 

competent to exercise supervision of electronic money institutions and more generally of payment 

services providers. This body should be clearly designated in the Law on BNB as is the case for the 

supervision of the banking system pursuant to Article 20(3) of the Law on BNB. 

2.3  Furthermore, it is advisable to adapt the terminology of the Law on BNB to the new definition for 

credit institutions by replacing, where relevant, the term ‘bank’ with the term ‘credit institution’. 

8 

9 

10 

11 

See Article 20(1) of Directive 2009/110/EC amending Article 4(1) of Directive 2006/48/EC of the European Parliament 
and  of  the  Council  of  14  June  2006  relating  to  the  taking  up  and  pursuit  of  the  business  of  credit  institutions  (recast) 
(OJ L 177, 30.6.2006, p. 1). 
§ 4. of the Transitional and Final Provisions of the draft law provides for changes of Article 1(2) and Article 2(1) of the 
Law on credit institutions to align the definition for credit institution thereof to the amended definition pursuant to Article 
4(1) of Directive 2006/48/EC. 
See proposed Article 16(15) of the Law on the BNB. The draft law, however, subjects electronic money institutions to 
the licensing procedure and terms for payment institutions under the Law on payment services and payment systems. 
See proposed Article 16(16) of the Law on the BNB. 

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This opinion will be published on the ECB’s website.  

Done at Frankfurt am Main, 3 August 2010. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

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