Bulgarian bank system under attack, says central bank

Bulgaria's central bank has said there has been a systematic attempt to destabilise the country through attacks on the banking system.

It said it would use all powers at its disposal to protect citizens' savings.

Shares in Bulgarian banks fell sharply for the second day in a row.

These is speculation that a run on deposits at the country's fourth-biggest bank, Corporate Commercial Bank, could spread to others.

The central bank took control of Corporate Commercial Bank last week and said its problems were isolated. Economists and Fitch Ratings agency have also played down the risk of contagion, while foreign banks with subsidiaries in Bulgaria insist their operations are safe.

But comments by a deputy from the country's ruling party on Thursday that another bank may suffer a similar fate further hit confidence and left investors rushing to ditch Bulgarian bank stocks.