Is the eastern European banking crisis flaring up again? Last month, Bulgaria’s fourth-largest lender, Corporate Commercial Bank (CCB), was nationalised.
The move came after allegations of financial mismanagement, and reports that a large depositor had withdrawn funds, triggered a bank run. Over 20% of deposits were pulled out in a week, causing Bulgaria’s biggest bank failure in 17 years.
The rumours (which the government believes represent an orchestrated attack on the banking system) prompted a smaller run at another institution, First Investment Bank.
Meanwhile, shares in Austria’s Erste Bank fell by 16% after it said last week that it would [...]
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