Integrated Capital Markets: Bulgaria’s Path to Sustainable and Innovative Finance
In times like these, the direction of development is not dictated by circumstances but by the choice to act purposefully with a clear vision. As Europe strives for better integration of its capital markets, Bulgaria must not only catch up but also be part of the change towards sustainable and innovative finance.
A strong banking system remains the backbone of the economy, but the new realities require more – more flexible forms of financing, digital connectivity and transparent access to investments. For long time now it’s not just about regulations, but about building an ecosystem in which markets develop sustainably, businesses grow and citizens participate in an informed way.
Change is underway. The Digital Operational Resilience Act entered into force across the EU in 2025 and sets specific requirements for the financial sector regarding cybersecurity and ICT risk management. At the same time, the MiCA Regulation, which represents the first EU framework for regulating crypto-assets, is already in force and national legislative measures, implementing the Regulation, are about to be adopted by the Bulgarian Parliament. These initiatives are clear signals that the financial system is moving towards higher standards of security, innovation and trust. In this context, the Financial Supervision Commission organised an important conference for the non-banking financial sector, promoting the joint work in the process of implementing the two regulations and the achievement of resilient environment.
It is often spoken of the Eurozone as a political goal, but for those who are busy in the capital markets’ area it has a broader significance, it is an affirmation that Bulgaria should be observed as a stable and predictable partner. The accession will eliminate currency risk, reduce transaction costs and facilitate cross-border investments. These opportunities should not be missed. The Financial Supervision Commission, as a responsible authority directly involved in the process of the Republic of Bulgaria’s accession to the euro area, monitors the progress of all supervised entities in introducing the euro in the non-banking financial sector.
The results of the survey conducted by the Financial Supervision Commission indicate that the preparation of the non-banking financial sector for introduction of the euro is at a very advanced stage. Many participants have already taken concrete steps for adaptation, amongst them updated internal plans, informing customers and partners, and information systems updates. Despite the progress, there are still sectors, like the technology and the regulatory one, which need to be improved.
The Financial Supervision Commission actively works to upgrade supervisory capacity through innovative digital tools, supports sustainable financing and ESG standards, and promotes a culture of openness and transparency among market participants. Apart from that, it acts as one of the initiators of the process of implementing the principles of corporate governance in Bulgaria, following internationally recognized standards for transparency, accountability, effective supervision and protection of shareholder rights. It is a key part of the requirements set by the OECD to strengthen confidence in the financial sector in Bulgaria. Ensuring good corporate governance not only improves the stability of markets, but also attracts new investments and supports the long-term growth of the economy.
The insurance sector and the pension funds have the actual potential in becoming a sustainable source of financing for the economy. The multi-fund model already allows consumers to choose between different investment strategies in accordance with their life cycle and risk tolerance. The next step is to fully use this tool to direct savings towards productive investments and to support the real economy.
For the market to be vibrant, it needs active and well informed participants. This means better financial literacy, digital solutions for access to products and clear communication. The development of capital markets in Bulgaria cannot be left to the natural course of events – it requires strategic vision, institutional capacity and broad public support. Only through partnership between the public and private sectors, through innovation and trust, can we build a modern and sustainable financial environment.
In 2025, the Financial Supervision Commission has set itself the goal of demonstrating that the power of regulation is not in restriction, but in creating an environment for trust, innovation and growth. Stable supervision, a predictable regulatory framework and an open dialogue with the participants in the sector – this is the model by which Bulgaria confirms its place in the heart of the European financial architecture.
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