Financial Stability Newsroom

The Central Bank of Malta and the MFSA have released the 2024 decision statement, addressing the identification of O-SIIs and the corresponding capital buffer calibration. This statement delves into the crucial role of the O-SII capital buffer within the CRD/CRR framework, as legally established in ...

The IMF report, dated 23 November 2023, highlights that Malta has marked an impressive recovery from the pandemic and has shown considerable resilience to shocks stemming from international geopolitical tensions. With weaker external demand and waning post-COVID-19 lockdowns pent-up demand, growth i ...

To assess the impact of the Basel III framework on banks, the Basel Committee on Banking Supervision monitors the effects and dynamics of the reforms. For this purpose, a semi-annual monitoring framework has been set up on the risk-based capital ratio, the leverage ratio and the liquidity metrics us ...

This issues note describes a high-level approach to addressing risks in investment funds that invest in assets which are either inherently illiquid or might become illiquid in times of stress. In particular, the note focuses on investment funds with large exposures to corporate debt and real estate. ...

The European Banking Authority (EBA) has published the results of its 2023 EU-wide stress test, which involved 70 banks from 16 EU and EEA countries, covering 75% of the EU banking sector assets. This stress test allows supervisors to assess the resilience of EU banks to a common set of adverse econ ...

The 2023 edition of the EU Non-bank Financial Intermediation Risk Monitor (NBFI Monitor) analyses systemic risks and vulnerabilities associated with investment funds and other financial institutions. For the first time, this edition extends the monitoring universe to crypto-assets as well as stablec ...

The 2023 edition of the OECD Sovereign Borrowing Outlook analyses the impact of increased macroeconomic and geopolitical uncertainty on sovereign borrowing needs and borrowing conditions. The key findings include: Sovereign borrowing needs are expected to increase in 2023 as many OECD countries ...

The European Systemic Risk Board (ESRB) has published a report outlining the systemic implications of crypto markets and proposing policy options to address the risks stemming from crypto-assets and decentralised finance (DeFi). The report finds that while this past year has been turbulent for cr ...

The European Central Bank (ECB) has published in May 2023 its biannual edition of the Financial Stability Review. The outlook for euro area financial stability remains fragile amid weak macro-financial conditions and unexpected stress in the banking sectors of some mature economies. Overall, t ...

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 ...