ABSTRACT
The first steps taken by foreign capital to penetrate the credit relations of some Bulgarian regions took place on the eve of Bulgarian liberation from Turkish domination. The influence of foreign capital in the Bulgarian banking system during the period between the first years following the end of the war and 1923 had considerably increased, as compared to the pre-war years. Foreign capital had the opportunity to rule over a great part or the country's economy, even though the ties between the industrial or commercial enterprises controlled by financial groups and the seven aforementioned large banks were not so firm and direct. During the war period, which consisted of the Balkan Wars and the First World War, which followed shortly after, all banking activities of banks controlled by foreign capital were frozen. During the following years, from 1932-1933 till the Second World War, the prevailing part of foreign banking capital marked a quick retreat from Bulgaria.
