This assessment has to be seen outside the narrow context of the banking sector. First, it shows that Bulgaria can be a successful and full participant in euro area institutions, given that the Banking Union is the first such institution in which the country has participated; and second, it is a good example of institutional development to be followed in an environment of still serious institutional deficits. In 2021, we also marked one year since the Bulgarian Lev joined the EU Exchange Rate Mechanism. This participation confirms and further proves the currency stability of the country. Another important strategic aspect is the consolidation process continuing in our banking sector. This process follows global trends of seeking to streamline the structure and efficiency of the banking sector in the light of increasing competition and the pressure by new providers of 1/3  BIS central bankers' speeches  financial services, as well as rising costs of complying with regulatory and legal norms. In spite of the difficult and complicated environment created by the pandemic, in 2021 we saw the biggest acquisition, in terms of size and price, in the Bulgarian banking sector. A deal like this i s the most accurate market evaluation of the condition of the banking sector and its attractiveness to strategic investors. Therefore, the sector stayed in very good shape and so far succeeded through the pandemic.
The dynamics of the political cycle in 2021 led to a pause in the institutions’ work in the process in the country. All the factors are now in place for its resumption through the continuation of the Coordination Council for Bulgaria’s preparations for euro area membership; and the institutionalisation of the Euro Adoption Plan. The draft of this plan, adopted by the Coordination Council on 30.06.2021, has already gone through the formal procedure of public consultation and inter-agency coordination, and has the support of our external partners. In spite of the delay in the formal process, the BNB remained the institution that continued to work actively in all areas related to the euro area accession, falling within the scope of our responsibilities. To this end, we established the necessary internal organisation of work and good operational communication with the European Central Bank. Specific individuals and channels for partnership were identified on both sides. In this sense, the central bank is ready to carry out the huge amount of technical work related to the adoption of the euro in a timely manner, notwithstanding the emerging tighter work schedule. In conclusion, 2022 is promising to be a year of challenges but also opportunities for the banking sector. The achievements of 2021 show that the sector is in a strong starting position to meet the challenges and make good use of the opportunities. 3/3  BIS central bankers' speeches