Banking Package
Transposition and Implementation of the Banking Package
The Malta Financial Services Authority (the “Authority”) is progressing with the transposition and implementation of the provisions of the Capital Requirements Regulation III (the ‘CRRIII’) and the Capital Requirements Directive VI (the ‘CRDVI’), and is in communication with external stakeholders to finalise all the necessary amendments to Legislation.
The updated legislative text, which includes amendments to the Banking Act and to the various Subsidiary Legislation and Banking Rules, will reflect the requirements outlined in the CRDVI. Furthermore, through the Feedback Statement published following the Public Consultation on the Members States’ options and discretions, the Authority had clarified on some aspects as raised by the industry during the Consultation.
The Authority will be updating stakeholders in due course once all legislative instruments implementing the Banking Package are published. Meanwhile, credit institutions and third county branches are always reminded of the importance to participate in public consultations that are carried out by the European Banking Authority (the ‘EBA’) for the development of regulatory products as part of the implementation of the Banking Package at EU level.
New Regulations in the Official Journal of the EU
On the 27 March 2027, the Commission Implementing Regulation (EU) 2026/722 was published in the Official Journal of the EU. This Regulation amends Implementing Regulation (EU) 2024/3172 which lays down the technical standards concerning the public disclosures by institutions of the information referred to in Part Eight, Titles II and III of the CRR.
Following the postponement of the application of the own funds requirements for market risk to 1 January 2027, the related disclosures had to be moved forward accordingly. Moreover, this Implementing Regulation introduces dedicated Articles on the requirements related to the implementation of the EBA’s Pillar 3 Data Hub (P3DH). More specifically, requirements consist of:
- the data exchange formats and information accompanying submissions to the EBA,
- the process regarding the technical validations and rejections of information submitted to the EBA,
- the publication via the P3DH, and
- the transitional provisions regarding the use of the P3DH.
Updates to Banking Rules
On 19 December 2025, the Authority repealed Banking Rule BR/06 on the statutory financial information to be submitted by credit institutions authorised under the Banking Act. This was done following a joint review by the MFSA and the Central Bank of Malta aimed at streamlining data collections, reducing duplicative reporting, and ensuring full alignment with the “report once” and “single point of entry” principles.
On 11 February 2026, the Authority published a revised version of Banking Rule BR/01 on application procedures and requirements of licenses for banking activities, and amendments to Banking Rule BR/24 on internal governance.
Banking Rule BR/01 has been revised following developments related to the authorisation of credit institutions to ensure the continued relevancy of the Rule in the current regulatory framework. This was done by integrating and cross-referencing the MFSA’s framework for authorisation, removing and updating numerous sections, further incorporating the role of the European Central Bank in the authorisation process, removing the questionnaires annexed to the rule and updating the notification form to establish a representative office in Malta, and referencing the related MFSA published guidelines on authorisation.
Banking Rule BR/24 has been amended to include a new Section 6 under Part 2, which replicates and expands further on the regulatory approval for individuals who assume key positions. This new section ensures that the principles relating to the approval of such individuals are respected on an ongoing basis, not just at authorisation stage.
On 17 February 2026, the Authority issued a new Banking Rule BR/32 on the technical specifications under the Capital Requirements Regulation. The Rule implements the EBA Guidelines on acquisition, development and construction (“ADC”) exposures to residential property under Article 126a of the “CRR”, published on 27 June 2025 (EBA/GL/2025/03), which specify the risk-mitigating conditions for such ADC exposures to be assigned a risk weight of 100%.
Circulars Issued and Published by the MFSA
A number of Circulars applicable to credit institutions were published by the Authority, accessible on the dedicated MFSA webpage. Institutions are expected to keep note of and address any MFSA Circulars and publications applicable to them.
