If there’s one thing guaranteed to get people panicking it’s being told not to panic.

The head of the Bulgarian central bank has asked for depositors to remain calm after it stepped in with a supervision order over liquidity problems. The central bank says the Corporate Commercial Bank is not bankrupt. They have removed the banks management and supervisory board for 3 months.

Apparently there had been a massive run on the bank this week due to various media reports.

I’m not saying the news is directly responsible for the moves in the euro but I’m sure it’s not helping as EUR/USD tests support at 1.3580/85.

The market will be fearful of any problems at banks especially with the upcoming bank tests and the fact that we’re still no closer to getting any of these new backstops officially in place. Depositors will be very fearful of the bail in conditions that are in place now though.

Mind you it’s a good a time as any to test the system.