Featured Product

    IMF Publishes Technical Notes Under FSAP Assessment on Malta

    November 21, 2019

    IMF published several technical notes under the Financial Sector Assessment Program (FSAP) on Malta. The technical notes cover various topics in the banking and insurance sectors such as banking, insurance, and securities sector supervision; macro-prudential policy framework and tools; risk analysis; and bank resolution and crisis management. The notes also cover analysis of the anti-money laundering and combating the financing of terrorism (AML/CFT) regime in Malta.

    The following are the key highlights of the various technical notes:

    • Technical Note on Banking Supervision. This note presents assessment of the FSAP mission of banking supervision based on discussions that took place during the 2018 FSAP mission in Malta. The analysis took into consideration the legal and regulatory framework in place, the supervisory practices employed, and other conditions as they existed in September 2018. The mission focused on selected topics in relation to the supervision of less significant institutions, which are not directly supervised by ECB, and on non-EU branches.
    • Technical Note on Insurance and Securities Sector Supervision. This note reviews the institutional arrangements and effectiveness of supervisory practices for the insurance and securities sectors in Malta. The review covers the governance, powers, operational independence, and supervisory resources of MFSA. The evaluation is benchmarked against the relevant Insurance Core Principles established by IAIS and the Objectives and Principles of Securities Regulation promulgated by IOSCO. The scope of review for the securities sector is limited to investment funds and securities firms.
    • Technical Note on Macro-Prudential Policy Framework and Tools. This technical note evaluates the domestic macro-prudential policy framework in Malta and provides recommendations to strengthen the framework. It assesses the domestic institutional arrangements, systemic risk monitoring framework;, and macro-prudential policy toolkit. It also assesses the current financial vulnerabilities in Malta, with the aim to develop specific policy recommendations. 
    • Technical Note on Risk Analysis. The note presents results of the solvency stress test, including sensitivity analysis, discusses liquidity stress test using three complementary approaches, and analyzes the contagion risks from both cross-sectoral and cross-border perspectives. This note also discusses the household stress tests. To address vulnerabilities in the banking system, this technical note provides policy recommendations that are based on findings in the stress tests and risk analysis and are aimed to strengthen resilience of the banking system in Malta.
    • Technical Note on Bank Resolution and Crisis Management. This note analyzes the bank failure mitigation and resolution regime in Malta as well as arrangements for preparing for and managing a financial crisis. It assesses the supervision of bank recovery plans, early intervention when problems are identified, resolution planning, resolution funding, and deposit insurance. It summarizes the findings of FSAP mission undertaken during September 10 to 26, 2018. It also considers recovery and resolution planning for significant insurers with links to banks. The assessment presented in this note is based on an analysis of the legal framework and documentation related to policies and procedures and on discussions with, and representations made by, the authorities and the private sector. 
    • Technical Note on AML/CFT. This note sets out the findings and recommendations of FSAP for the Republic of Malta in the areas of AML/CFT. It summarizes the findings of a targeted review of several aspects of the progress of Malta in addressing AML/CFT vulnerabilities in the financial sector, specifically the banking sector.

     

    Related Links

    Keywords: Europe, EU, Malta, Banking, Insurance, Securities, Stress Testing, Macro-Prudential Policy, Less Significant Institutions, AML/CFT, FSAP, Resolution Planning, Crisis Management, MFSA, IMF

    Featured Experts
    Related Articles
    News

    APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness

    APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).

    December 02, 2021 WebPage Regulatory News
    News

    EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance

    The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).

    December 01, 2021 WebPage Regulatory News
    News

    FSB Sets Out Good Practices for Crisis Management Groups

    The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.

    November 30, 2021 WebPage Regulatory News
    News

    APRA Penalizes Heritage Bank for Incorrect Reporting of Capital

    The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Releases Annual Report 2021-2022

    The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Updates Timeline for Implementation of Certain Basel Rules

    Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.

    November 29, 2021 WebPage Regulatory News
    News

    EC Defers Adoption of Regulatory Standards for Disclosures Under SFDR

    EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.

    November 29, 2021 WebPage Regulatory News
    News

    FCA Releases MIFIDPRU Application Forms and Third Set of Rules on IFPR

    The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Capital Adequacy Standards for Banks

    The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.

    November 29, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Seek Comments on Access to Central Clearing and Portability

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.

    November 29, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7751