Financial Stability Newsroom

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 ...

The Bank for International Settlements (BIS) has published its BIS Quarterly Review December 2021, which includes the paper ‘Non-bank financial sector: systemic regulation needed’. This edition includes also other reports and special features, from which of special relevance for systemic risk ...

This study aims to contribute to the growing strand of literature on climate transition risk by estimating the short-term implications of a carbon taxation on the investment portfolios of the Maltese financial system. Adopting a static balance sheet assumption, this research study quantifies the fin ...

The Domestic Insurance Stress Test represents the first step by the MFSA’s Financial Stability function to assess the domestic insurance sector resilience to an adverse scenario, triggered by an interest rate shock. Insurance undertakings’ vulnerabilities are assessed from a macro-prudential per ...

The International Monetary Fund (IMF) has published the Global Financial Stability Report (October 2021). This report indicates that global financial stability risks have been contained so far, reflecting ongoing policy support and a rebound in the global economy earlier this year. A very brief s ...

The European Central Bank (ECB) has published the results of its economy-wide climate stress test. The exercise tested the impact of climate change on more than four million firms worldwide and 1,600 euro-area banks under three different climate policy scenarios. The results show that firms and ...

The European Systemic Risk Board (ESRB) has published the EU Non-bank Financial Intermediation Risk Monitor 2021 (NBFI Monitor). This is the sixth issue in an annual series monitoring non-bank financial intermediation, an area which has grown in recent years and now accounts for around 40% of the EU ...

This paper presents a new approach to analyse the interconnectedness between a macrolevel network and a local-level network. The methodology is developed on the Diebold and Yilmaz connectedness measure and it considers the presence of entities within a global network which can influence other entiti ...