This study is devoted to the quality of the loans, extended by commercial banks in Bulgaria in the period 2007 - March 2017. The dynamics of the quality of bank loans has been analysed by researching some key indicators of the state of credit portfolios. The major factors have been extrapolated which have an impact on the studied dynamics and the main trends in the quality of loans have been outlined. The current state of the quality of the credit portfolio of the banking system has been researched…