{
  "title": "Malta: Financial System Stability Assessment",
  "publication": "IMF Staff Country Reports, February 27, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2019/02/27/malta-financial-system-stability-assessment-46636",
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  "summary": "This Financial System Stability Assessment of Malta shows that while Malta has benefited from considerable financial inflows, the associated risks, especially related to money laundering and terrorism financing, need to be closely monitored and addressed.",
  "sections": [
    {
      "heading": "Executive summary and risks",
      "content": "- Malta has benefited from considerable financial inflows, but associated risks, especially related to money laundering and terrorism financing, need to be closely monitored and addressed.\n- Key metrics suggest that the banking system is in good health, but challenges exist.\n- The banking system remains resilient under a severe scenario, with weaknesses limited to a few small banks.\n- The system is sufficiently capitalized to absorb losses in the event of a severe macroeconomic shock, but risky exposures would lead to potential losses at a few small banks.\n- Ensuring adequate resources is critical to preserve the effectiveness and operational independence of the Malta Financial Services Authority (MFSA)."
    },
    {
      "heading": "Findings on bank supervision and regulatory framework",
      "content": "- Weaknesses in supervision are concentrated in a subset of smaller banks.\n- AML/CFT (Anti-money laundering and combating the financing of terrorism) risks are a key vulnerability that requires close monitoring and remedial action.\n- The MFSA needs adequate resources to maintain effectiveness and operational independence."
    },
    {
      "heading": "Policy recommendations and supervisory actions",
      "content": "- Strengthen bank supervision by taking timelier supervisory actions.\n- Increase the frequency of onsite inspections.\n- Make more use of monetary fines as part of the sanctioning regime.\n- Ensure supervisory action is not delayed through judicial appeal."
    },
    {
      "heading": "Subject areas and keywords (as described in the source)",
      "content": "- Anti-money laundering and combating the financing of terrorism (AML/CFT)\n- Banking; Capital adequacy requirements; Commercial banks; Bank insolvency framework; Bank owner; Banking sector; Banking system\n- Financial institutions; Financial sector; Insurance companies; Loans; NPL ratio; potential GDP; insolvency framework\n- IMF staff calculation; ISCR; CR; regime; sample bank; weakness stem"
    },
    {
      "heading": "Key publication identifiers and metrics (as provided)",
      "content": "- Pages: 62\n- Volume: 2019\n- Issue: 070\n- Series: Country Report No. 2019/070\n- DOI: https://doi.org/10.5089/9781498300636.002\n- Stock No: 1MLTEA2019003\n- ISBN: 9781498300636\n- ISSN: 1934-7685\n- Publication date on page: February 27, 2019\n\nInternational Monetary Fund. Monetary and Capital Markets Department \"Malta: Financial System Stability Assessment\", IMF Staff Country Reports 2019, 070 (2019), accessed 9/12/2026, https://doi.org/10.5089/9781498300636.002\n\n---\n\n Content in this bundle\n\n- Malta: Financial System Stability Assessment; IMF Country Report No. 19/70; February 7, 2019\n  - Malta: Financial System Stability Assessment; IMF Country Report No. 19/70; February 7, 2019 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Malta: Financial System Stability Assessment; IMF Country Report No. 19/70; February 7, 2019 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: February 27, 2019",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781498300636.002",
    "Malta has benefited from considerable financial inflows, but associated risks, especially related to money laundering and terrorism financing, need to be closely monitored and addressed.",
    "Key metrics suggest that the banking system is in good health, but challenges exist.",
    "The banking system remains resilient under a severe scenario, with weaknesses limited to a few small banks.",
    "The system is sufficiently capitalized to absorb losses in the event of a severe macroeconomic shock, but risky exposures would lead to potential losses at a few small banks.",
    "Ensuring adequate resources is critical to preserve the effectiveness and operational independence of the Malta Financial Services Authority (MFSA).",
    "Weaknesses in supervision are concentrated in a subset of smaller banks.",
    "AML/CFT (Anti-money laundering and combating the financing of terrorism) risks are a key vulnerability that requires close monitoring and remedial action.",
    "The MFSA needs adequate resources to maintain effectiveness and operational independence.",
    "Strengthen bank supervision by taking timelier supervisory actions.",
    "Increase the frequency of onsite inspections.",
    "Make more use of monetary fines as part of the sanctioning regime.",
    "Ensure supervisory action is not delayed through judicial appeal.",
    "IMF staff calculation; ISCR; CR; regime; sample bank; weakness stem",
    "Pages: 62",
    "Volume: 2019",
    "Issue: 070",
    "Series: Country Report No. 2019/070",
    "DOI: https://doi.org/10.5089/9781498300636.002",
    "Stock No: 1MLTEA2019003",
    "ISBN: 9781498300636",
    "ISSN: 1934-7685",
    "Publication date on page: February 27, 2019",
    "**Malta: Financial System Stability Assessment; IMF Country Report No. 19/70; February 7, 2019**"
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