Former Central Bank Chief Supervisor Charged with Inaction in Respect of Corpbank

Sofia, April 7 (BTA) - The Sofia City Prosecution Office said on
 Tuesday it has brought malfeasance charges against Roumen
Simeonov, former deputy governor of the Bulgarian National Bank
(BNB, the central bank) and former head of the BNB Banking
Supervision Department, for failing to address problems in
Corporate Commercial Bank (Corpbank).

According to the prosecutors, a February 2010 report by BNB
inspectors identified many wrongdoings at Corpbank which could
potentially endanger the financial interests of its depositors.
Although the report was brought to Simeonov's notice, he did not
 take the legally prescribed supervisory measures in respect of
Corpbank in his capacity as head of the BNB Banking Supervision
Department.

The offence was committed in order to bring benefit for
Corpbank's shareholders, the prosecutors said. They reasoned
that Simeonov's inaction in the period between February 2010 and
 June 2013 also endangered the financial interests of the state.

Simeonov was placed on recognizance not to leave.

The news comes 10 months after Simeonov's successor Tsvetan
Gounev was charged with the same offence.

On June 20, 2014, Corpbank, Bulgaria's fourth biggest lender,
suspended all operations after a panic run by depositors left it
 illiquid. The central bank withdrew Corpbank's banking licence
on November 5, 2014, and the bank's bankruptcy was petitioned on
 November 7.