Malta: Financial Sector Assessment Program-Technical Note-Banking Supervision

IMF Staff Country Reports, November 21, 2019

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Canonical URL: Malta: Financial Sector Assessment Program-Technical Note-Banking Supervision

Focuses on selected topics in relation to the supervision of less significant institutions, which are not directly supervised by the European Central Bank, and on non-European Union branches.
Examines the Malta Financial Services Authority’s (MFSA) internal organization in its role as an integrated supervisor, noting that several units are involved in supervision and/or enforcement.

Review of supervisory measures reveals that the MFSA has taken decisive action in several instances, but such actions have not been timely.
A new organizational structure of the MFSA has been proposed recently.
Involving the head of enforcement and the General Counsel in the decision-making process is assessed as positive.

Developing resources devoted to enforcement will enable the unit to spend less time on the preparation of the sanctions and more time on ongoing supervisory monitoring.
The report recommends developing a five-year plan to increase the MFSA’s budgetary resources and capacity to reflect the size and importance of the financial sector in Malta.

Subject areas: Anti-money laundering and combating the financing of terrorism (AML/CFT); Bank supervision; Banking; Credit; Credit risk; Crime; Financial institutions; Financial regulation and supervision; Financial Sector Assessment Program; Money; Nonperforming loans.
Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Bank supervision, CR, Credit, credit institution, credit risk, Credit risk, human resources, ISCR, license holder, MFSA staff handbook, Nonperforming loans, recruitment process, risk management, supervisory council.