Bulgaria’s central bank warned yesterday of a systematic attempt to destabilise the country through attacks on the banking system and vowed to use everything at its disposal to protect citizens’ savings.

Shares in Bulgarian banks fell sharply for a second day on speculation that a run on deposits at the country’s fourth-biggest bank, Corporate Commercial Bank (Corpbank), could spread to other lenders and shake Bulgaria’s already weak economy and those of its neighbours.

The central bank took control of Corpbank 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 jolted confidence and left investors scrambling to ditch Bulgarian bank stocks.

“In recent days there has been an attempt to destabilise the state through an organised attack against Bulgarian banks without any reason,” the central bank said in a statement. It said First Investment Bank had been a major target.

The central bank urged all state institutions to work together to protect financial stability and take legal action against those spreading “untrue and ill-intentioned rumours” about the health of Bulgaria’s banks.

Interior Minister Tsvetlin Yovchev said the government was investigating attempts to destabilise the banking system. Prime Minister Plamen Oresharski said there was no cause for concern.

Reuters witnesses saw queues of between 15 and 30 customers build gradually after some bank branches opened yesterday in the capital Sofia. By late morning, 65 people were queuing outside a central branch of First Investment Bank, with a further 12 queueing at one of the bank’s ATM cash machines.

“I was told to come here and take my money out,” said a 32-year old woman in the queue who did not want to be named. “I hope they do not close the doors in front of our noses.”