## Malta: Financial System Stability Assessment

_IMF Staff Country Reports, February 27, 2019_

## Source details

**Canonical URL:** [Malta: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2019/02/27/malta-financial-system-stability-assessment-46636)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/02/27/malta-financial-system-stability-assessment-46636/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/02/27/malta-financial-system-stability-assessment-46636/index.json)
- [Bundle manifest](/en/publications/cr/issues/2019/02/27/malta-financial-system-stability-assessment-46636/bundle-manifest.json)

## Bibliographic details
- Published: February 27, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498300636.002

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### Executive summary and risks
- 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).

### Findings on bank supervision and regulatory framework
- 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.

### Policy recommendations and supervisory actions
- 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.

### Subject areas and keywords (as described in the source)
- Anti-money laundering and combating the financing of terrorism (AML/CFT)
- Banking; Capital adequacy requirements; Commercial banks; Bank insolvency framework; Bank owner; Banking sector; Banking system
- Financial institutions; Financial sector; Insurance companies; Loans; NPL ratio; potential GDP; insolvency framework
- IMF staff calculation; ISCR; CR; regime; sample bank; weakness stem

### Key publication identifiers and metrics (as provided)
- 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

*International 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*

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## Content in this bundle

- **Malta: Financial System Stability Assessment; IMF Country Report No. 19/70; February 7, 2019**
  - [Malta: Financial System Stability Assessment; IMF Country Report No. 19/70; February 7, 2019 (Markdown version)](/-/media/files/publications/cr/2019/1mltea2019003.pdf.md){rel="alternate" type="text/markdown"}
  - [Malta: Financial System Stability Assessment; IMF Country Report No. 19/70; February 7, 2019 (PDF)](/-/media/files/publications/cr/2019/1mltea2019003.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2019/02/27/malta-financial-system-stability-assessment-46636_