Financial Stability Newsroom

The Central Bank of Malta in collaboration with the Malta Financial Services Authority (MFSA) under the auspices of the Joint Financial Stability Board (JFSB) decided to set a Sectoral Systemic Risk Buffer (sSyRB) of 1.5% which is to be applied on the amount of risk-weighted assets held against dome ...

The Financial Stability Board (FSB) has published on 20/10/2022 a report on liquidity in core government bond markets. Changes in core government bond markets over the past decade may have made them more prone to liquidity imbalances in times of stress. Unlike the typical case of being a ‘safe ...

Global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades. Downside risks to the outlook remain elevated, while policy trade-offs to address the cost-of-living crisis have become more challenging. The forecast for ...

The European Systemic Risk Board (ESRB) has identified a number of severe risks to financial stability which may materialise simultaneously amplifying their impact. The Warning calls for resilience in the financial system to be preserved or enhanced in order to support the economy if these risks mat ...

The European Central Bank (ECB) has published the Financial Stability Review, May 2022. Overview: Financial market and macroeconomic conditions in the EU have deteriorated and/or show signs of further deterioration: Energy and commodity price shock increase risks to economic growth, inflatio ...

The International Monetary Fund (IMF) has published the World Economic Outlook April 2022 showing  the latest world economic projections for  a broad range of  macroeconomic indicators. Key outcomes: Global growth is projected to contract from an estimated 6.1% in 2021 to 3.6% in 2022 an ...

The Network for Greening the Financial System (NGFS) discusses in this report (March 2022) on the role that central banks and supervisors need to play with regard to the financial and economic risks stemming from biodiversity loss, setting out the links between biodiversity loss and the macroeconomi ...

On 31 March 2022, the ESRB published  the concept note titled Review of the EU Macroprudential Framework for the Banking Sector. This concept note discusses the main challenges to be addressed and setting out what in the ESRB’s view needs to be done to ensure that the macroprudential rules for ba ...

The MFSA, together with the Central Bank of Malta have re-confirmed Bank of Valletta p.l.c., HSBC Bank Malta p.l.c., MDB Group Limited, and APS Bank p.l.c. as Other Systemically Important Institutions (O-SIIs) and communicated the corresponding capital buffer rate each must meet. Credit Insti ...

The main purpose of this report is to provide an update, at a micro level, of the liquidity stress testing of investment funds carried out for the first time by the Authority in 2020. While most of the methodology remains unchanged, some modifications are applied to overcome certain shortcomings tha ...