10.05.2023 BDB’s Executive Director, Iliya Karanikolov, presented the changes in banking regulations to students at Sofia University

The meeting of the Chairperson of the Management Board and Executive Director of the Bulgarian Development Bank, Iliya Karanikolov, with students from the Faculty of Economics and Business Administration at Sofia University "St. Kliment Ohridski" lasted almost two hours. He presented the upcoming regulatory initiatives and challenges in the banking sector in the next 3 years.

"In the conditions of a complex geopolitical environment, the regulatory burden continues to grow," Karanikolov said, outlining the trends and priorities of the European Central Bank.

He dwelt in detail on the requirements of the Basel reform package (Basel IV) and explained to the students the objectives of DORA (Digital Operational Resilience Act) – the European regulation aimed at preventing and mitigating cyber threats. Its entry into force in 2025 will affect the activities of over 20,000 companies in the EU, including financial and lending institutions.

"The most important legislative initiative to achieve the objectives of the Green Deal is the CSRD Directive, which was adopted at the beginning of this year. It examines the reporting of companies in relation to sustainability," explained BDB’s Executive Director.

Iliya Karanikolov also presented the upcoming reforms in the field of combating money laundering. The action plan includes a single regulation and a single EU anti-money laundering authority (AML Authority). The general direction of financial crime regulations is towards greater harmonization of standards in order to eliminate inconsistencies between different jurisdictions and gaps in law enforcement.

“Digital innovation continues to reshape the financial services industry. The pace and scale of technological change is likely to increase due to factors such as artificial intelligence (AI), cloud computing and the market entry of new, non-bank players offering banking services such as payments,” commented BDB’s Executive Director. He also answered current questions from the financial sector asked by the students.

The lecture on financial and tax law was part of the cooperation agreement between Sofia University and BDB. The lecture course is taught by Prof. Dr. Savina Mihaylova-Goleminova. In 2022, the two institutions jointly hosted the “Do We Need Green Finance” competition, as well as the “Academy for Sustainable Investments and Finance”.

Iliya Karanikolov has over 20 years of banking and financial experience and is an established expert in the fields of public administration, European integration, EU strategies and programs. He is a lecturer on topics such as cost-benefit analysis of large infrastructural, municipal and private projects, control of funds from Structural Funds, financial instruments, etc.