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

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News
    News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News
    News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8952